Public Act 103-0995
 
SB3426 EnrolledLRB103 37529 HLH 67652 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. 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.
    Beginning on January 1, 2024, farm machinery and equipment
also includes electrical power generation equipment used
primarily for production agriculture.
    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, 2028, 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, 2029, 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. However, until January 1, 2024, this
exemption 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.
    Beginning January 1, 2010 and continuing through December
31, 2023, 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.
From January 1, 2024 through December 31, 2029, this exemption
applies only to the use of qualifying tangible personal
property transferred incident to by: (A) the modification,
refurbishment, completion, repair, replacement, or maintenance
of an aircraft 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;
and (B) persons who engage in the modification, replacement,
repair, and maintenance of aircraft engines or power plants
without regard to whether or not those persons meet the
qualifications of item (A).
    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 February 5, 2020 (the effective date of Public Act
101-629).
    (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 and through December 31,
2026, 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 Public Act 101-31 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 into 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.
    (32) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits. This
item (32) is exempt from the provisions of Section 3-75. As
used in this item (32):
        "Breast pump" means an electrically controlled or
    manually controlled pump device designed or marketed to be
    used to express milk from a human breast during lactation,
    including the pump device and any battery, AC adapter, or
    other power supply unit that is used to power the pump
    device and is packaged and sold with the pump device at the
    time of sale.
        "Breast pump collection and storage supplies" means
    items of tangible personal property designed or marketed
    to be used in conjunction with a breast pump to collect
    milk expressed from a human breast and to store collected
    milk until it is ready for consumption.
        "Breast pump collection and storage supplies"
    includes, but is not limited to: breast shields and breast
    shield connectors; breast pump tubes and tubing adapters;
    breast pump valves and membranes; backflow protectors and
    backflow protector adaptors; bottles and bottle caps
    specific to the operation of the breast pump; and breast
    milk storage bags.
        "Breast pump collection and storage supplies" does not
    include: (1) bottles and bottle caps not specific to the
    operation of the breast pump; (2) breast pump travel bags
    and other similar carrying accessories, including ice
    packs, labels, and other similar products; (3) breast pump
    cleaning supplies; (4) nursing bras, bra pads, breast
    shells, and other similar products; and (5) creams,
    ointments, and other similar products that relieve
    breastfeeding-related symptoms or conditions of the
    breasts or nipples, unless sold as part of a breast pump
    kit that is pre-packaged by the breast pump manufacturer
    or distributor.
        "Breast pump kit" means a kit that: (1) contains no
    more than a breast pump, breast pump collection and
    storage supplies, a rechargeable battery for operating the
    breast pump, a breastmilk cooler, bottle stands, ice
    packs, and a breast pump carrying case; and (2) is
    pre-packaged as a breast pump kit by the breast pump
    manufacturer or distributor.
    (33) Tangible personal property sold by or on behalf of
the State Treasurer pursuant to the Revised Uniform Unclaimed
Property Act. This item (33) is exempt from the provisions of
Section 3-75.
    (34) Beginning on January 1, 2024, tangible personal
property purchased by an active duty member of the armed
forces of the United States who presents valid military
identification and purchases the property using a form of
payment where the federal government is the payor. The member
of the armed forces must complete, at the point of sale, a form
prescribed by the Department of Revenue documenting that the
transaction is eligible for the exemption under this
paragraph. Retailers must keep the form as documentation of
the exemption in their records for a period of not less than 6
years. "Armed forces of the United States" means the United
States Army, Navy, Air Force, Marine Corps, or Coast Guard.
This paragraph is exempt from the provisions of Section 3-75.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
revised 12-12-23.)
 
    Section 10. 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.
    Beginning on January 1, 2024, farm machinery and equipment
also includes electrical power generation equipment used
primarily for production agriculture.
    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, 2028, 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, 2029, 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. However, until January 1, 2024, this
exemption 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.
    Beginning January 1, 2010 and continuing through December
31, 2023, 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. From January 1, 2024
through December 31, 2029, this exemption applies only to the
transfer use of qualifying tangible personal property incident
to by: (A) the modification, refurbishment, completion,
repair, replacement, or maintenance of an aircraft 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; and (B) persons who engage in
the modification, replacement, repair, and maintenance of
aircraft engines or power plants without regard to whether or
not those persons meet the qualifications of item (A).
    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 February 5, 2020 (the
effective date of Public Act 101-629).
    (30) Beginning January 1, 2017 and through December 31,
2026, 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 Public Act 101-31 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 into 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.
    (33) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits. This
item (33) is exempt from the provisions of Section 3-55. As
used in this item (33):
        "Breast pump" means an electrically controlled or
    manually controlled pump device designed or marketed to be
    used to express milk from a human breast during lactation,
    including the pump device and any battery, AC adapter, or
    other power supply unit that is used to power the pump
    device and is packaged and sold with the pump device at the
    time of sale.
        "Breast pump collection and storage supplies" means
    items of tangible personal property designed or marketed
    to be used in conjunction with a breast pump to collect
    milk expressed from a human breast and to store collected
    milk until it is ready for consumption.
        "Breast pump collection and storage supplies"
    includes, but is not limited to: breast shields and breast
    shield connectors; breast pump tubes and tubing adapters;
    breast pump valves and membranes; backflow protectors and
    backflow protector adaptors; bottles and bottle caps
    specific to the operation of the breast pump; and breast
    milk storage bags.
        "Breast pump collection and storage supplies" does not
    include: (1) bottles and bottle caps not specific to the
    operation of the breast pump; (2) breast pump travel bags
    and other similar carrying accessories, including ice
    packs, labels, and other similar products; (3) breast pump
    cleaning supplies; (4) nursing bras, bra pads, breast
    shells, and other similar products; and (5) creams,
    ointments, and other similar products that relieve
    breastfeeding-related symptoms or conditions of the
    breasts or nipples, unless sold as part of a breast pump
    kit that is pre-packaged by the breast pump manufacturer
    or distributor.
        "Breast pump kit" means a kit that: (1) contains no
    more than a breast pump, breast pump collection and
    storage supplies, a rechargeable battery for operating the
    breast pump, a breastmilk cooler, bottle stands, ice
    packs, and a breast pump carrying case; and (2) is
    pre-packaged as a breast pump kit by the breast pump
    manufacturer or distributor.
    (34) Tangible personal property sold by or on behalf of
the State Treasurer pursuant to the Revised Uniform Unclaimed
Property Act. This item (34) is exempt from the provisions of
Section 3-55.
    (35) Beginning on January 1, 2024, tangible personal
property purchased by an active duty member of the armed
forces of the United States who presents valid military
identification and purchases the property using a form of
payment where the federal government is the payor. The member
of the armed forces must complete, at the point of sale, a form
prescribed by the Department of Revenue documenting that the
transaction is eligible for the exemption under this
paragraph. Retailers must keep the form as documentation of
the exemption in their records for a period of not less than 6
years. "Armed forces of the United States" means the United
States Army, Navy, Air Force, Marine Corps, or Coast Guard.
This paragraph is exempt from the provisions of Section 3-55.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
revised 12-12-23.)
 
    Section 15. 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.
        Beginning on January 1, 2024, farm machinery and
    equipment also includes electrical power generation
    equipment used primarily for production agriculture.
        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) Except as otherwise provided in this Section,
    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, 2028, 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 CFR 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, 2029, 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. However,
    until January 1, 2024, this exemption 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.
        Beginning January 1, 2010 and continuing through
    December 31, 2023, 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. From January
    1, 2024 through December 31, 2029, this exemption applies
    only to the sale use of qualifying tangible personal
    property to by: (A) 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; and (B) persons who engage
    in the modification, replacement, repair, and maintenance
    of aircraft engines or power plants without regard to
    whether or not those persons meet the qualifications of
    item (A).
        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 February 5, 2020 (the effective date of
    Public Act 101-629).
        (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 and through December
    31, 2026, 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 rental purchase agreement, as
    defined in the Rental-Purchase 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 Public Act 101-31
    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 into 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.
        (45) Beginning January 1, 2020 and through December
    31, 2020, sales of tangible personal property made by a
    marketplace seller over a marketplace for which tax is due
    under this Act but for which use tax has been collected and
    remitted to the Department by a marketplace facilitator
    under Section 2d of the Use Tax Act are exempt from tax
    under this Act. A marketplace seller claiming this
    exemption shall maintain books and records demonstrating
    that the use tax on such sales has been collected and
    remitted by a marketplace facilitator. Marketplace sellers
    that have properly remitted tax under this Act on such
    sales may file a claim for credit as provided in Section 6
    of this Act. No claim is allowed, however, for such taxes
    for which a credit or refund has been issued to the
    marketplace facilitator under the Use Tax Act, or for
    which the marketplace facilitator has filed a claim for
    credit or refund under the Use Tax Act.
        (46) Beginning July 1, 2022, breast pumps, breast pump
    collection and storage supplies, and breast pump kits.
    This item (46) is exempt from the provisions of Section
    2-70. As used in this item (46):
        "Breast pump" means an electrically controlled or
    manually controlled pump device designed or marketed to be
    used to express milk from a human breast during lactation,
    including the pump device and any battery, AC adapter, or
    other power supply unit that is used to power the pump
    device and is packaged and sold with the pump device at the
    time of sale.
        "Breast pump collection and storage supplies" means
    items of tangible personal property designed or marketed
    to be used in conjunction with a breast pump to collect
    milk expressed from a human breast and to store collected
    milk until it is ready for consumption.
        "Breast pump collection and storage supplies"
    includes, but is not limited to: breast shields and breast
    shield connectors; breast pump tubes and tubing adapters;
    breast pump valves and membranes; backflow protectors and
    backflow protector adaptors; bottles and bottle caps
    specific to the operation of the breast pump; and breast
    milk storage bags.
        "Breast pump collection and storage supplies" does not
    include: (1) bottles and bottle caps not specific to the
    operation of the breast pump; (2) breast pump travel bags
    and other similar carrying accessories, including ice
    packs, labels, and other similar products; (3) breast pump
    cleaning supplies; (4) nursing bras, bra pads, breast
    shells, and other similar products; and (5) creams,
    ointments, and other similar products that relieve
    breastfeeding-related symptoms or conditions of the
    breasts or nipples, unless sold as part of a breast pump
    kit that is pre-packaged by the breast pump manufacturer
    or distributor.
        "Breast pump kit" means a kit that: (1) contains no
    more than a breast pump, breast pump collection and
    storage supplies, a rechargeable battery for operating the
    breast pump, a breastmilk cooler, bottle stands, ice
    packs, and a breast pump carrying case; and (2) is
    pre-packaged as a breast pump kit by the breast pump
    manufacturer or distributor.
        (47) Tangible personal property sold by or on behalf
    of the State Treasurer pursuant to the Revised Uniform
    Unclaimed Property Act. This item (47) is exempt from the
    provisions of Section 2-70.
        (48) Beginning on January 1, 2024, tangible personal
    property purchased by an active duty member of the armed
    forces of the United States who presents valid military
    identification and purchases the property using a form of
    payment where the federal government is the payor. The
    member of the armed forces must complete, at the point of
    sale, a form prescribed by the Department of Revenue
    documenting that the transaction is eligible for the
    exemption under this paragraph. Retailers must keep the
    form as documentation of the exemption in their records
    for a period of not less than 6 years. "Armed forces of the
    United States" means the United States Army, Navy, Air
    Force, Marine Corps, or Coast Guard. This paragraph is
    exempt from the provisions of Section 2-70.
(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
12-12-23.)
 
    Section 20. The Motor Fuel Tax Law is amended by changing
Section 2 as follows:
 
    (35 ILCS 505/2)  (from Ch. 120, par. 418)
    Sec. 2. A tax is imposed on the privilege of operating
motor vehicles upon the public highways and recreational-type
watercraft upon the waters of this State.
    (a) Prior to August 1, 1989, the tax is imposed at the rate
of 13 cents per gallon on all motor fuel used in motor vehicles
operating on the public highways and recreational type
watercraft operating upon the waters of this State. Beginning
on August 1, 1989 and until January 1, 1990, the rate of the
tax imposed in this paragraph shall be 16 cents per gallon.
Beginning January 1, 1990 and until July 1, 2019, the rate of
tax imposed in this paragraph, including the tax on compressed
natural gas, shall be 19 cents per gallon. Beginning July 1,
2019 and until July 1, 2020, the rate of tax imposed in this
paragraph shall be 38 cents per gallon. Beginning July 1, 2020
and until July 1, 2021, the rate of tax imposed in this
paragraph shall be 38.7 cents per gallon. Beginning July 1,
2021 and until January 1, 2023, the rate of tax imposed in this
paragraph shall be 39.2 cents per gallon. On January 1, 2023,
the rate of tax imposed in this paragraph shall be increased by
an amount equal to the percentage increase, if any, in the
Consumer Price Index for All Urban Consumers for all items
published by the United States Department of Labor for the 12
months ending in September of 2022. On July 1, 2023, and on
July 1 of each subsequent year, the rate of tax imposed in this
paragraph shall be increased by an amount equal to the
percentage increase, if any, in the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor for the 12 months ending in March of
the year in which the increase takes place. The percentage
increase in the Consumer Price Index shall be calculated as
follows: (1) calculate the average Consumer Price Index for
the full 12 months ending in March of the year in which the
increase takes place; (2) calculate the average Consumer Price
Index for the full 12 months ending in March of the year
immediately preceding the year in which the increase takes
place; (3) calculate the percentage increase, if any, in the
current-year average determined under item (1) over the
preceding-year average determined under item (2). The rate
shall be rounded to the nearest one-tenth of one cent.
    (a-5) Beginning on July 1, 2022 and through December 31,
2022, each retailer of motor fuel shall cause the following
notice to be posted in a prominently visible place on each
retail dispensing device that is used to dispense motor fuel
in the State of Illinois: "As of July 1, 2022, the State of
Illinois has suspended the inflation adjustment to the motor
fuel tax through December 31, 2022. The price on this pump
should reflect the suspension of the tax increase." The notice
shall be printed in bold print on a sign that is no smaller
than 4 inches by 8 inches. The sign shall be clearly visible to
customers. Any retailer who fails to post or maintain a
required sign through December 31, 2022 is guilty of a petty
offense for which the fine shall be $500 per day per each
retail premises where a violation occurs.
    (b) Until July 1, 2019, the tax on the privilege of
operating motor vehicles which use diesel fuel, liquefied
natural gas, or propane shall be the rate according to
paragraph (a) plus an additional 2 1/2 cents per gallon.
Beginning July 1, 2019, the tax on the privilege of operating
motor vehicles which use diesel fuel, liquefied natural gas,
or propane shall be the rate according to subsection (a) plus
an additional 7.5 cents per gallon. "Diesel fuel" is defined
as any product intended for use or offered for sale as a fuel
for engines in which the fuel is injected into the combustion
chamber and ignited by pressure without electric spark.
    (c) A tax is imposed upon the privilege of engaging in the
business of selling motor fuel as a retailer or reseller on all
motor fuel used in motor vehicles operating on the public
highways and recreational type watercraft operating upon the
waters of this State: (1) at the rate of 3 cents per gallon on
motor fuel owned or possessed by such retailer or reseller at
12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
per gallon on motor fuel owned or possessed by such retailer or
reseller at 12:01 A.M. on January 1, 1990.
    Retailers and resellers who are subject to this additional
tax shall be required to inventory such motor fuel and pay this
additional tax in a manner prescribed by the Department of
Revenue.
    The tax imposed in this paragraph (c) shall be in addition
to all other taxes imposed by the State of Illinois or any unit
of local government in this State.
    (d) Except as provided in Section 2a, the collection of a
tax based on gallonage of gasoline used for the propulsion of
any aircraft is prohibited on and after October 1, 1979, and
the collection of a tax based on gallonage of special fuel used
for the propulsion of any aircraft is prohibited on and after
December 1, 2019.
    (e) The collection of a tax, based on gallonage of all
products commonly or commercially known or sold as 1-K
kerosene, regardless of its classification or uses, is
prohibited (i) on and after July 1, 1992 until December 31,
1999, except when the 1-K kerosene is either: (1) delivered
into bulk storage facilities of a bulk user, or (2) delivered
directly into the fuel supply tanks of motor vehicles and (ii)
on and after January 1, 2000. Beginning on January 1, 2000, the
collection of a tax, based on gallonage of all products
commonly or commercially known or sold as 1-K kerosene,
regardless of its classification or uses, is prohibited except
when the 1-K kerosene is delivered directly into a storage
tank that is located at a facility that has withdrawal
facilities that are readily accessible to and are capable of
dispensing 1-K kerosene into the fuel supply tanks of motor
vehicles. For purposes of this subsection (e), a facility is
considered to have withdrawal facilities that are not "readily
accessible to and capable of dispensing 1-K kerosene into the
fuel supply tanks of motor vehicles" only if the 1-K kerosene
is delivered from: (i) a dispenser hose that is short enough so
that it will not reach the fuel supply tank of a motor vehicle
or (ii) a dispenser that is enclosed by a fence or other
physical barrier so that a vehicle cannot pull alongside the
dispenser to permit fueling.
    Any person who sells or uses 1-K kerosene for use in motor
vehicles upon which the tax imposed by this Law has not been
paid shall be liable for any tax due on the sales or use of 1-K
kerosene.
    As used in this Section, "Consumer Price Index" means the
index published by the Bureau of Labor Statistics of the
United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100.
(Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19;
101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.