Bill Text: IL HB3477 | 2023-2024 | 103rd General Assembly | Introduced


Bill Title: Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain food, drugs, and medical appliances that were taxed at the rate of 1% shall be exempt from the taxes under those Acts. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-02-17 - Referred to Rules Committee [HB3477 Detail]

Download: Illinois-2023-HB3477-Introduced.html


103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3477

Introduced , by Rep. Dave Vella

SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-5
35 ILCS 105/3-10
35 ILCS 110/3-5
35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
35 ILCS 115/3-5
35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
35 ILCS 120/2-5
35 ILCS 120/2-10

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that certain food, drugs, and medical appliances that were taxed at the rate of 1% shall be exempt from the taxes under those Acts. Effective immediately.
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A BILL FOR

HB3477LRB103 27010 HLH 53377 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing Sections
53-5 and 3-10 as follows:
6 (35 ILCS 105/3-5)
7 Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9 (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16 (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19 (3) Personal property purchased by a not-for-profit arts
20or cultural organization that establishes, by proof required
21by the Department by rule, that it has received an exemption
22under Section 501(c)(3) of the Internal Revenue Code and that
23is organized and operated primarily for the presentation or

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

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

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

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

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1stated on customers' bills for the purchase and consumption of
2food and beverages purchased at retail from a retailer, to the
3extent that the proceeds of the service charge are in fact
4turned over as tips or as a substitute for tips to the
5employees who participate directly in preparing, serving,
6hosting or cleaning up the food or beverage function with
7respect to which the service charge is imposed.
8 (14) Until July 1, 2003, oil field exploration, drilling,
9and production equipment, including (i) rigs and parts of
10rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
11pipe and tubular goods, including casing and drill strings,
12(iii) pumps and pump-jack units, (iv) storage tanks and flow
13lines, (v) any individual replacement part for oil field
14exploration, drilling, and production equipment, and (vi)
15machinery and equipment purchased for lease; but excluding
16motor vehicles required to be registered under the Illinois
17Vehicle Code.
18 (15) Photoprocessing machinery and equipment, including
19repair and replacement parts, both new and used, including
20that manufactured on special order, certified by the purchaser
21to be used primarily for photoprocessing, and including
22photoprocessing machinery and equipment purchased for lease.
23 (16) Until July 1, 2028, coal and aggregate exploration,
24mining, off-highway hauling, processing, maintenance, and
25reclamation equipment, including replacement parts and
26equipment, and including equipment purchased for lease, but

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

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

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

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

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

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

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

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

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

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

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

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1exemption under this paragraph (35) applies continuously from
2January 1, 2010 through December 31, 2024; however, no claim
3for credit or refund is allowed for taxes paid as a result of
4the disallowance of this exemption on or after January 1, 2015
5and prior to February 5, 2020 (the effective date of Public Act
6101-629) this amendatory Act of the 101st General Assembly.
7 (36) Tangible personal property purchased by a
8public-facilities corporation, as described in Section
911-65-10 of the Illinois Municipal Code, for purposes of
10constructing or furnishing a municipal convention hall, but
11only if the legal title to the municipal convention hall is
12transferred to the municipality without any further
13consideration by or on behalf of the municipality at the time
14of the completion of the municipal convention hall or upon the
15retirement or redemption of any bonds or other debt
16instruments issued by the public-facilities corporation in
17connection with the development of the municipal convention
18hall. This exemption includes existing public-facilities
19corporations as provided in Section 11-65-25 of the Illinois
20Municipal Code. This paragraph is exempt from the provisions
21of Section 3-90.
22 (37) Beginning January 1, 2017 and through December 31,
232026, menstrual pads, tampons, and menstrual cups.
24 (38) Merchandise that is subject to the Rental Purchase
25Agreement Occupation and Use Tax. The purchaser must certify
26that the item is purchased to be rented subject to a rental

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

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

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1 data center. The term "qualified tangible personal
2 property" also includes building materials physically
3 incorporated in to the qualifying data center. To document
4 the exemption allowed under this Section, the retailer
5 must obtain from the purchaser a copy of the certificate
6 of eligibility issued by the Department of Commerce and
7 Economic Opportunity.
8 This item (40) is exempt from the provisions of Section
93-90.
10 (41) Beginning July 1, 2022, breast pumps, breast pump
11collection and storage supplies, and breast pump kits. This
12item (41) is exempt from the provisions of Section 3-90. As
13used in this item (41):
14 "Breast pump" means an electrically controlled or
15 manually controlled pump device designed or marketed to be
16 used to express milk from a human breast during lactation,
17 including the pump device and any battery, AC adapter, or
18 other power supply unit that is used to power the pump
19 device and is packaged and sold with the pump device at the
20 time of sale.
21 "Breast pump collection and storage supplies" means
22 items of tangible personal property designed or marketed
23 to be used in conjunction with a breast pump to collect
24 milk expressed from a human breast and to store collected
25 milk until it is ready for consumption.
26 "Breast pump collection and storage supplies"

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1 includes, but is not limited to: breast shields and breast
2 shield connectors; breast pump tubes and tubing adapters;
3 breast pump valves and membranes; backflow protectors and
4 backflow protector adaptors; bottles and bottle caps
5 specific to the operation of the breast pump; and breast
6 milk storage bags.
7 "Breast pump collection and storage supplies" does not
8 include: (1) bottles and bottle caps not specific to the
9 operation of the breast pump; (2) breast pump travel bags
10 and other similar carrying accessories, including ice
11 packs, labels, and other similar products; (3) breast pump
12 cleaning supplies; (4) nursing bras, bra pads, breast
13 shells, and other similar products; and (5) creams,
14 ointments, and other similar products that relieve
15 breastfeeding-related symptoms or conditions of the
16 breasts or nipples, unless sold as part of a breast pump
17 kit that is pre-packaged by the breast pump manufacturer
18 or distributor.
19 "Breast pump kit" means a kit that: (1) contains no
20 more than a breast pump, breast pump collection and
21 storage supplies, a rechargeable battery for operating the
22 breast pump, a breastmilk cooler, bottle stands, ice
23 packs, and a breast pump carrying case; and (2) is
24 pre-packaged as a breast pump kit by the breast pump
25 manufacturer or distributor.
26 (42) (41) Tangible personal property sold by or on behalf

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1of the State Treasurer pursuant to the Revised Uniform
2Unclaimed Property Act. This item (42) (41) is exempt from the
3provisions of Section 3-90.
4 (43) Beginning on July 1, 2022, food for human consumption
5that is to be consumed off the premises where it is sold, as
6defined in Section 3-10, except excluding alcoholic beverages,
7food consisting of or infused with adult use cannabis, soft
8drinks, and food that has been prepared for immediate
9consumption. This item (43) is exempt from the provisions of
10Section 3-90.
11 (44) Beginning on July 1, 2023, the following items, as
12defined in Section 3-10:
13 (A) prescription and nonprescription medicines, drugs,
14 and medical appliances;
15 (B) products classified as Class III medical devices
16 by the United States Food and Drug Administration that are
17 used for cancer treatment pursuant to a prescription, as
18 well as any accessories and components related to those
19 devices;
20 (C) modifications to a motor vehicle for the purpose
21 of rendering it usable by a person with a disability; and
22 (D) insulin, blood sugar testing materials, syringes,
23 and needles used by human diabetics.
24 This item (44) is exempt from the provisions of Section
253-90.
26(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;

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1101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
26-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
3102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
4eff. 5-27-22; revised 8-1-22.)
5 (35 ILCS 105/3-10)
6 Sec. 3-10. Rate of tax. Unless otherwise provided in this
7Section, the tax imposed by this Act is at the rate of 6.25% of
8either the selling price or the fair market value, if any, of
9the tangible personal property. In all cases where property
10functionally used or consumed is the same as the property that
11was purchased at retail, then the tax is imposed on the selling
12price of the property. In all cases where property
13functionally used or consumed is a by-product or waste product
14that has been refined, manufactured, or produced from property
15purchased at retail, then the tax is imposed on the lower of
16the fair market value, if any, of the specific property so used
17in this State or on the selling price of the property purchased
18at retail. For purposes of this Section "fair market value"
19means the price at which property would change hands between a
20willing buyer and a willing seller, neither being under any
21compulsion to buy or sell and both having reasonable knowledge
22of the relevant facts. The fair market value shall be
23established by Illinois sales by the taxpayer of the same
24property as that functionally used or consumed, or if there
25are no such sales by the taxpayer, then comparable sales or

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1purchases of property of like kind and character in Illinois.
2 Beginning on July 1, 2000 and through December 31, 2000,
3with respect to motor fuel, as defined in Section 1.1 of the
4Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
5the Use Tax Act, the tax is imposed at the rate of 1.25%.
6 Beginning on August 6, 2010 through August 15, 2010, and
7beginning again on August 5, 2022 through August 14, 2022,
8with respect to sales tax holiday items as defined in Section
93-6 of this Act, the tax is imposed at the rate of 1.25%.
10 With respect to gasohol, the tax imposed by this Act
11applies to (i) 70% of the proceeds of sales made on or after
12January 1, 1990, and before July 1, 2003, (ii) 80% of the
13proceeds of sales made on or after July 1, 2003 and on or
14before July 1, 2017, and (iii) 100% of the proceeds of sales
15made thereafter. If, at any time, however, the tax under this
16Act on sales of gasohol is imposed at the rate of 1.25%, then
17the tax imposed by this Act applies to 100% of the proceeds of
18sales of gasohol made during that time.
19 With respect to majority blended ethanol fuel, the tax
20imposed by this Act does not apply to the proceeds of sales
21made on or after July 1, 2003 and on or before December 31,
222023 but applies to 100% of the proceeds of sales made
23thereafter.
24 With respect to biodiesel blends with no less than 1% and
25no more than 10% biodiesel, the tax imposed by this Act applies
26to (i) 80% of the proceeds of sales made on or after July 1,

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12003 and on or before December 31, 2018 and (ii) 100% of the
2proceeds of sales made after December 31, 2018 and before
3January 1, 2024. On and after January 1, 2024 and on or before
4December 31, 2030, the taxation of biodiesel, renewable
5diesel, and biodiesel blends shall be as provided in Section
63-5.1. If, at any time, however, the tax under this Act on
7sales of biodiesel blends with no less than 1% and no more than
810% biodiesel is imposed at the rate of 1.25%, then the tax
9imposed by this Act applies to 100% of the proceeds of sales of
10biodiesel blends with no less than 1% and no more than 10%
11biodiesel made during that time.
12 With respect to biodiesel and biodiesel blends with more
13than 10% but no more than 99% biodiesel, the tax imposed by
14this Act does not apply to the proceeds of sales made on or
15after July 1, 2003 and on or before December 31, 2023. On and
16after January 1, 2024 and on or before December 31, 2030, the
17taxation of biodiesel, renewable diesel, and biodiesel blends
18shall be as provided in Section 3-5.1.
19 Until July 1, 2022 and beginning again on July 1, 2023,
20with respect to food for human consumption that is to be
21consumed off the premises where it is sold (other than
22alcoholic beverages, food consisting of or infused with adult
23use cannabis, soft drinks, and food that has been prepared for
24immediate consumption), the tax is imposed at the rate of 1%.
25Beginning on July 1, 2022 and until July 1, 2023, with respect
26to food for human consumption that is to be consumed off the

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1premises where it is sold (other than alcoholic beverages,
2food consisting of or infused with adult use cannabis, soft
3drinks, and food that has been prepared for immediate
4consumption), the tax is imposed at the rate of 0%.
5 Until July 1, 2023, with With respect to prescription and
6nonprescription medicines, drugs, medical appliances, products
7classified as Class III medical devices by the United States
8Food and Drug Administration that are used for cancer
9treatment pursuant to a prescription, as well as any
10accessories and components related to those devices,
11modifications to a motor vehicle for the purpose of rendering
12it usable by a person with a disability, and insulin, blood
13sugar testing materials, syringes, and needles used by human
14diabetics, the tax is imposed at the rate of 1%. For the
15purposes of this Section, until September 1, 2009: the term
16"soft drinks" means any complete, finished, ready-to-use,
17non-alcoholic drink, whether carbonated or not, including, but
18not limited to, soda water, cola, fruit juice, vegetable
19juice, carbonated water, and all other preparations commonly
20known as soft drinks of whatever kind or description that are
21contained in any closed or sealed bottle, can, carton, or
22container, regardless of size; but "soft drinks" does not
23include coffee, tea, non-carbonated water, infant formula,
24milk or milk products as defined in the Grade A Pasteurized
25Milk and Milk Products Act, or drinks containing 50% or more
26natural fruit or vegetable juice.

HB3477- 28 -LRB103 27010 HLH 53377 b
1 Notwithstanding any other provisions of this Act,
2beginning September 1, 2009, "soft drinks" means non-alcoholic
3beverages that contain natural or artificial sweeteners. "Soft
4drinks" does do not include beverages that contain milk or
5milk products, soy, rice or similar milk substitutes, or
6greater than 50% of vegetable or fruit juice by volume.
7 Until August 1, 2009, and notwithstanding any other
8provisions of this Act, "food for human consumption that is to
9be consumed off the premises where it is sold" includes all
10food sold through a vending machine, except soft drinks and
11food products that are dispensed hot from a vending machine,
12regardless of the location of the vending machine. Beginning
13August 1, 2009, and notwithstanding any other provisions of
14this Act, "food for human consumption that is to be consumed
15off the premises where it is sold" includes all food sold
16through a vending machine, except soft drinks, candy, and food
17products that are dispensed hot from a vending machine,
18regardless of the location of the vending machine.
19 Notwithstanding any other provisions of this Act,
20beginning September 1, 2009, "food for human consumption that
21is to be consumed off the premises where it is sold" does not
22include candy. For purposes of this Section, "candy" means a
23preparation of sugar, honey, or other natural or artificial
24sweeteners in combination with chocolate, fruits, nuts or
25other ingredients or flavorings in the form of bars, drops, or
26pieces. "Candy" does not include any preparation that contains

HB3477- 29 -LRB103 27010 HLH 53377 b
1flour or requires refrigeration.
2 Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "nonprescription medicines and
4drugs" does not include grooming and hygiene products. For
5purposes of this Section, "grooming and hygiene products"
6includes, but is not limited to, soaps and cleaning solutions,
7shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
8lotions and screens, unless those products are available by
9prescription only, regardless of whether the products meet the
10definition of "over-the-counter-drugs". For the purposes of
11this paragraph, "over-the-counter-drug" means a drug for human
12use that contains a label that identifies the product as a drug
13as required by 21 CFR C.F.R. § 201.66. The
14"over-the-counter-drug" label includes:
15 (A) a A "Drug Facts" panel; or
16 (B) a A statement of the "active ingredient(s)" with a
17 list of those ingredients contained in the compound,
18 substance or preparation.
19 Beginning on January 1, 2014 (the effective date of Public
20Act 98-122) this amendatory Act of the 98th General Assembly,
21"prescription and nonprescription medicines and drugs"
22includes medical cannabis purchased from a registered
23dispensing organization under the Compassionate Use of Medical
24Cannabis Program Act.
25 As used in this Section, "adult use cannabis" means
26cannabis subject to tax under the Cannabis Cultivation

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1Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2and does not include cannabis subject to tax under the
3Compassionate Use of Medical Cannabis Program Act.
4 If the property that is purchased at retail from a
5retailer is acquired outside Illinois and used outside
6Illinois before being brought to Illinois for use here and is
7taxable under this Act, the "selling price" on which the tax is
8computed shall be reduced by an amount that represents a
9reasonable allowance for depreciation for the period of prior
10out-of-state use.
11(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
12102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
134-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
14102-700, Article 65, Section 65-5, eff. 4-19-22; revised
155-27-22.)
16 Section 10. The Service Use Tax Act is amended by changing
17Sections 3-5 and 3-10 as follows:
18 (35 ILCS 110/3-5)
19 Sec. 3-5. Exemptions. Use of the following tangible
20personal property is exempt from the tax imposed by this Act:
21 (1) Personal property purchased from a corporation,
22society, association, foundation, institution, or
23organization, other than a limited liability company, that is
24organized and operated as a not-for-profit service enterprise

HB3477- 31 -LRB103 27010 HLH 53377 b
1for the benefit of persons 65 years of age or older if the
2personal property was not purchased by the enterprise for the
3purpose of resale by the enterprise.
4 (2) Personal property purchased by a non-profit Illinois
5county fair association for use in conducting, operating, or
6promoting the county fair.
7 (3) Personal property purchased by a not-for-profit arts
8or cultural organization that establishes, by proof required
9by the Department by rule, that it has received an exemption
10under Section 501(c)(3) of the Internal Revenue Code and that
11is organized and operated primarily for the presentation or
12support of arts or cultural programming, activities, or
13services. These organizations include, but are not limited to,
14music and dramatic arts organizations such as symphony
15orchestras and theatrical groups, arts and cultural service
16organizations, local arts councils, visual arts organizations,
17and media arts organizations. On and after July 1, 2001 (the
18effective date of Public Act 92-35), however, an entity
19otherwise eligible for this exemption shall not make tax-free
20purchases unless it has an active identification number issued
21by the Department.
22 (4) Legal tender, currency, medallions, or gold or silver
23coinage issued by the State of Illinois, the government of the
24United States of America, or the government of any foreign
25country, and bullion.
26 (5) Until July 1, 2003 and beginning again on September 1,

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12004 through August 30, 2014, graphic arts machinery and
2equipment, including repair and replacement parts, both new
3and used, and including that manufactured on special order or
4purchased for lease, certified by the purchaser to be used
5primarily for graphic arts production. Equipment includes
6chemicals or chemicals acting as catalysts but only if the
7chemicals or chemicals acting as catalysts effect a direct and
8immediate change upon a graphic arts product. Beginning on
9July 1, 2017, graphic arts machinery and equipment is included
10in the manufacturing and assembling machinery and equipment
11exemption under Section 2 of this Act.
12 (6) Personal property purchased from a teacher-sponsored
13student organization affiliated with an elementary or
14secondary school located in Illinois.
15 (7) Farm machinery and equipment, both new and used,
16including that manufactured on special order, certified by the
17purchaser to be used primarily for production agriculture or
18State or federal agricultural programs, including individual
19replacement parts for the machinery and equipment, including
20machinery and equipment purchased for lease, and including
21implements of husbandry defined in Section 1-130 of the
22Illinois Vehicle Code, farm machinery and agricultural
23chemical and fertilizer spreaders, and nurse wagons required
24to be registered under Section 3-809 of the Illinois Vehicle
25Code, but excluding other motor vehicles required to be
26registered under the Illinois Vehicle Code. Horticultural

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

HB3477- 34 -LRB103 27010 HLH 53377 b
1conduct of its business as an air common carrier, for a flight
2destined for or returning from a location or locations outside
3the United States without regard to previous or subsequent
4domestic stopovers.
5 Beginning July 1, 2013, fuel and petroleum products sold
6to or used by an air carrier, certified by the carrier to be
7used for consumption, shipment, or storage in the conduct of
8its business as an air common carrier, for a flight that (i) is
9engaged in foreign trade or is engaged in trade between the
10United States and any of its possessions and (ii) transports
11at least one individual or package for hire from the city of
12origination to the city of final destination on the same
13aircraft, without regard to a change in the flight number of
14that aircraft.
15 (9) Proceeds of mandatory service charges separately
16stated on customers' bills for the purchase and consumption of
17food and beverages acquired as an incident to the purchase of a
18service from a serviceman, to the extent that the proceeds of
19the service charge are in fact turned over as tips or as a
20substitute for tips to the employees who participate directly
21in preparing, serving, hosting or cleaning up the food or
22beverage function with respect to which the service charge is
23imposed.
24 (10) Until July 1, 2003, oil field exploration, drilling,
25and production equipment, including (i) rigs and parts of
26rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)

HB3477- 35 -LRB103 27010 HLH 53377 b
1pipe and tubular goods, including casing and drill strings,
2(iii) pumps and pump-jack units, (iv) storage tanks and flow
3lines, (v) any individual replacement part for oil field
4exploration, drilling, and production equipment, and (vi)
5machinery and equipment purchased for lease; but excluding
6motor vehicles required to be registered under the Illinois
7Vehicle Code.
8 (11) Proceeds from the sale of photoprocessing machinery
9and equipment, including repair and replacement parts, both
10new and used, including that manufactured on special order,
11certified by the purchaser to be used primarily for
12photoprocessing, and including photoprocessing machinery and
13equipment purchased for lease.
14 (12) Until July 1, 2028, coal and aggregate exploration,
15mining, off-highway hauling, processing, maintenance, and
16reclamation equipment, including replacement parts and
17equipment, and including equipment purchased for lease, but
18excluding motor vehicles required to be registered under the
19Illinois Vehicle Code. The changes made to this Section by
20Public Act 97-767 apply on and after July 1, 2003, but no claim
21for credit or refund is allowed on or after August 16, 2013
22(the effective date of Public Act 98-456) for such taxes paid
23during the period beginning July 1, 2003 and ending on August
2416, 2013 (the effective date of Public Act 98-456).
25 (13) Semen used for artificial insemination of livestock
26for direct agricultural production.

HB3477- 36 -LRB103 27010 HLH 53377 b
1 (14) Horses, or interests in horses, registered with and
2meeting the requirements of any of the Arabian Horse Club
3Registry of America, Appaloosa Horse Club, American Quarter
4Horse Association, United States Trotting Association, or
5Jockey Club, as appropriate, used for purposes of breeding or
6racing for prizes. This item (14) is exempt from the
7provisions of Section 3-75, and the exemption provided for
8under this item (14) applies for all periods beginning May 30,
91995, but no claim for credit or refund is allowed on or after
10January 1, 2008 (the effective date of Public Act 95-88) for
11such taxes paid during the period beginning May 30, 2000 and
12ending on January 1, 2008 (the effective date of Public Act
1395-88).
14 (15) Computers and communications equipment utilized for
15any hospital purpose and equipment used in the diagnosis,
16analysis, or treatment of hospital patients purchased by a
17lessor who leases the equipment, under a lease of one year or
18longer executed or in effect at the time the lessor would
19otherwise be subject to the tax imposed by this Act, to a
20hospital that has been issued an active tax exemption
21identification number by the Department under Section 1g of
22the Retailers' Occupation Tax Act. If the equipment is leased
23in a manner that does not qualify for this exemption or is used
24in any other non-exempt manner, the lessor shall be liable for
25the tax imposed under this Act or the Use Tax Act, as the case
26may be, based on the fair market value of the property at the

HB3477- 37 -LRB103 27010 HLH 53377 b
1time the non-qualifying use occurs. No lessor shall collect or
2attempt to collect an amount (however designated) that
3purports to reimburse that lessor for the tax imposed by this
4Act or the Use Tax Act, as the case may be, if the tax has not
5been paid by the lessor. If a lessor improperly collects any
6such amount from the lessee, the lessee shall have a legal
7right to claim a refund of that amount from the lessor. If,
8however, that amount is not refunded to the lessee for any
9reason, the lessor is liable to pay that amount to the
10Department.
11 (16) Personal property purchased by a lessor who leases
12the property, under a lease of one year or longer executed or
13in effect at the time the lessor would otherwise be subject to
14the tax imposed by this Act, to a governmental body that has
15been issued an active tax exemption identification number by
16the Department under Section 1g of the Retailers' Occupation
17Tax Act. If the property is leased in a manner that does not
18qualify for this exemption or is used in any other non-exempt
19manner, the lessor shall be liable for the tax imposed under
20this Act or the Use Tax Act, as the case may be, based on the
21fair market value of the property at the time the
22non-qualifying use occurs. No lessor shall collect or attempt
23to collect an amount (however designated) that purports to
24reimburse that lessor for the tax imposed by this Act or the
25Use Tax Act, as the case may be, if the tax has not been paid
26by the lessor. If a lessor improperly collects any such amount

HB3477- 38 -LRB103 27010 HLH 53377 b
1from the lessee, the lessee shall have a legal right to claim a
2refund of that amount from the lessor. If, however, that
3amount is not refunded to the lessee for any reason, the lessor
4is liable to pay that amount to the Department.
5 (17) Beginning with taxable years ending on or after
6December 31, 1995 and ending with taxable years ending on or
7before December 31, 2004, personal property that is donated
8for disaster relief to be used in a State or federally declared
9disaster area in Illinois or bordering Illinois by a
10manufacturer or retailer that is registered in this State to a
11corporation, society, association, foundation, or institution
12that has been issued a sales tax exemption identification
13number by the Department that assists victims of the disaster
14who reside within the declared disaster area.
15 (18) Beginning with taxable years ending on or after
16December 31, 1995 and ending with taxable years ending on or
17before December 31, 2004, personal property that is used in
18the performance of infrastructure repairs in this State,
19including but not limited to municipal roads and streets,
20access roads, bridges, sidewalks, waste disposal systems,
21water and sewer line extensions, water distribution and
22purification facilities, storm water drainage and retention
23facilities, and sewage treatment facilities, resulting from a
24State or federally declared disaster in Illinois or bordering
25Illinois when such repairs are initiated on facilities located
26in the declared disaster area within 6 months after the

HB3477- 39 -LRB103 27010 HLH 53377 b
1disaster.
2 (19) Beginning July 1, 1999, game or game birds purchased
3at a "game breeding and hunting preserve area" as that term is
4used in the Wildlife Code. This paragraph is exempt from the
5provisions of Section 3-75.
6 (20) A motor vehicle, as that term is defined in Section
71-146 of the Illinois Vehicle Code, that is donated to a
8corporation, limited liability company, society, association,
9foundation, or institution that is determined by the
10Department to be organized and operated exclusively for
11educational purposes. For purposes of this exemption, "a
12corporation, limited liability company, society, association,
13foundation, or institution organized and operated exclusively
14for educational purposes" means all tax-supported public
15schools, private schools that offer systematic instruction in
16useful branches of learning by methods common to public
17schools and that compare favorably in their scope and
18intensity with the course of study presented in tax-supported
19schools, and vocational or technical schools or institutes
20organized and operated exclusively to provide a course of
21study of not less than 6 weeks duration and designed to prepare
22individuals to follow a trade or to pursue a manual,
23technical, mechanical, industrial, business, or commercial
24occupation.
25 (21) Beginning January 1, 2000, personal property,
26including food, purchased through fundraising events for the

HB3477- 40 -LRB103 27010 HLH 53377 b
1benefit of a public or private elementary or secondary school,
2a group of those schools, or one or more school districts if
3the events are sponsored by an entity recognized by the school
4district that consists primarily of volunteers and includes
5parents and teachers of the school children. This paragraph
6does not apply to fundraising events (i) for the benefit of
7private home instruction or (ii) for which the fundraising
8entity purchases the personal property sold at the events from
9another individual or entity that sold the property for the
10purpose of resale by the fundraising entity and that profits
11from the sale to the fundraising entity. This paragraph is
12exempt from the provisions of Section 3-75.
13 (22) Beginning January 1, 2000 and through December 31,
142001, new or used automatic vending machines that prepare and
15serve hot food and beverages, including coffee, soup, and
16other items, and replacement parts for these machines.
17Beginning January 1, 2002 and through June 30, 2003, machines
18and parts for machines used in commercial, coin-operated
19amusement and vending business if a use or occupation tax is
20paid on the gross receipts derived from the use of the
21commercial, coin-operated amusement and vending machines. This
22paragraph is exempt from the provisions of Section 3-75.
23 (23) Beginning August 23, 2001 and through June 30, 2016,
24food for human consumption that is to be consumed off the
25premises where it is sold (other than alcoholic beverages,
26soft drinks, and food that has been prepared for immediate

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

HB3477- 42 -LRB103 27010 HLH 53377 b
1Act or the Use Tax Act, as the case may be, if the tax has not
2been paid by the lessor. If a lessor improperly collects any
3such amount from the lessee, the lessee shall have a legal
4right to claim a refund of that amount from the lessor. If,
5however, that amount is not refunded to the lessee for any
6reason, the lessor is liable to pay that amount to the
7Department. This paragraph is exempt from the provisions of
8Section 3-75.
9 (25) Beginning on August 2, 2001 (the effective date of
10Public Act 92-227), personal property purchased by a lessor
11who leases the property, under a lease of one year or longer
12executed or in effect at the time the lessor would otherwise be
13subject to the tax imposed by this Act, to a governmental body
14that has been issued an active tax exemption identification
15number by the Department under Section 1g of the Retailers'
16Occupation Tax Act. If the property is leased in a manner that
17does not qualify for this exemption or is used in any other
18nonexempt manner, the lessor shall be liable for the tax
19imposed under this Act or the Use Tax Act, as the case may be,
20based on the fair market value of the property at the time the
21nonqualifying use occurs. No lessor shall collect or attempt
22to collect an amount (however designated) that purports to
23reimburse that lessor for the tax imposed by this Act or the
24Use Tax Act, as the case may be, if the tax has not been paid
25by the lessor. If a lessor improperly collects any such amount
26from the lessee, the lessee shall have a legal right to claim a

HB3477- 43 -LRB103 27010 HLH 53377 b
1refund of that amount from the lessor. If, however, that
2amount is not refunded to the lessee for any reason, the lessor
3is liable to pay that amount to the Department. This paragraph
4is exempt from the provisions of Section 3-75.
5 (26) Beginning January 1, 2008, tangible personal property
6used in the construction or maintenance of a community water
7supply, as defined under Section 3.145 of the Environmental
8Protection Act, that is operated by a not-for-profit
9corporation that holds a valid water supply permit issued
10under Title IV of the Environmental Protection Act. This
11paragraph is exempt from the provisions of Section 3-75.
12 (27) Beginning January 1, 2010 and continuing through
13December 31, 2024, materials, parts, equipment, components,
14and furnishings incorporated into or upon an aircraft as part
15of the modification, refurbishment, completion, replacement,
16repair, or maintenance of the aircraft. This exemption
17includes consumable supplies used in the modification,
18refurbishment, completion, replacement, repair, and
19maintenance of aircraft, but excludes any materials, parts,
20equipment, components, and consumable supplies used in the
21modification, replacement, repair, and maintenance of aircraft
22engines or power plants, whether such engines or power plants
23are installed or uninstalled upon any such aircraft.
24"Consumable supplies" include, but are not limited to,
25adhesive, tape, sandpaper, general purpose lubricants,
26cleaning solution, latex gloves, and protective films. This

HB3477- 44 -LRB103 27010 HLH 53377 b
1exemption applies only to the use of qualifying tangible
2personal property transferred incident to the modification,
3refurbishment, completion, replacement, repair, or maintenance
4of aircraft by persons who (i) hold an Air Agency Certificate
5and are empowered to operate an approved repair station by the
6Federal Aviation Administration, (ii) have a Class IV Rating,
7and (iii) conduct operations in accordance with Part 145 of
8the Federal Aviation Regulations. The exemption does not
9include aircraft operated by a commercial air carrier
10providing scheduled passenger air service pursuant to
11authority issued under Part 121 or Part 129 of the Federal
12Aviation Regulations. The changes made to this paragraph (27)
13by Public Act 98-534 are declarative of existing law. It is the
14intent of the General Assembly that the exemption under this
15paragraph (27) applies continuously from January 1, 2010
16through December 31, 2024; however, no claim for credit or
17refund is allowed for taxes paid as a result of the
18disallowance of this exemption on or after January 1, 2015 and
19prior to February 5, 2020 (the effective date of Public Act
20101-629) this amendatory Act of the 101st General Assembly.
21 (28) Tangible personal property purchased by a
22public-facilities corporation, as described in Section
2311-65-10 of the Illinois Municipal Code, for purposes of
24constructing or furnishing a municipal convention hall, but
25only if the legal title to the municipal convention hall is
26transferred to the municipality without any further

HB3477- 45 -LRB103 27010 HLH 53377 b
1consideration by or on behalf of the municipality at the time
2of the completion of the municipal convention hall or upon the
3retirement or redemption of any bonds or other debt
4instruments issued by the public-facilities corporation in
5connection with the development of the municipal convention
6hall. This exemption includes existing public-facilities
7corporations as provided in Section 11-65-25 of the Illinois
8Municipal Code. This paragraph is exempt from the provisions
9of Section 3-75.
10 (29) Beginning January 1, 2017 and through December 31,
112026, menstrual pads, tampons, and menstrual cups.
12 (30) Tangible personal property transferred to a purchaser
13who is exempt from the tax imposed by this Act by operation of
14federal law. This paragraph is exempt from the provisions of
15Section 3-75.
16 (31) Qualified tangible personal property used in the
17construction or operation of a data center that has been
18granted a certificate of exemption by the Department of
19Commerce and Economic Opportunity, whether that tangible
20personal property is purchased by the owner, operator, or
21tenant of the data center or by a contractor or subcontractor
22of the owner, operator, or tenant. Data centers that would
23have qualified for a certificate of exemption prior to January
241, 2020 had Public Act 101-31 this amendatory Act of the 101st
25General Assembly been in effect, may apply for and obtain an
26exemption for subsequent purchases of computer equipment or

HB3477- 46 -LRB103 27010 HLH 53377 b
1enabling software purchased or leased to upgrade, supplement,
2or replace computer equipment or enabling software purchased
3or leased in the original investment that would have
4qualified.
5 The Department of Commerce and Economic Opportunity shall
6grant a certificate of exemption under this item (31) to
7qualified data centers as defined by Section 605-1025 of the
8Department of Commerce and Economic Opportunity Law of the
9Civil Administrative Code of Illinois.
10 For the purposes of this item (31):
11 "Data center" means a building or a series of
12 buildings rehabilitated or constructed to house working
13 servers in one physical location or multiple sites within
14 the State of Illinois.
15 "Qualified tangible personal property" means:
16 electrical systems and equipment; climate control and
17 chilling equipment and systems; mechanical systems and
18 equipment; monitoring and secure systems; emergency
19 generators; hardware; computers; servers; data storage
20 devices; network connectivity equipment; racks; cabinets;
21 telecommunications cabling infrastructure; raised floor
22 systems; peripheral components or systems; software;
23 mechanical, electrical, or plumbing systems; battery
24 systems; cooling systems and towers; temperature control
25 systems; other cabling; and other data center
26 infrastructure equipment and systems necessary to operate

HB3477- 47 -LRB103 27010 HLH 53377 b
1 qualified tangible personal property, including fixtures;
2 and component parts of any of the foregoing, including
3 installation, maintenance, repair, refurbishment, and
4 replacement of qualified tangible personal property to
5 generate, transform, transmit, distribute, or manage
6 electricity necessary to operate qualified tangible
7 personal property; and all other tangible personal
8 property that is essential to the operations of a computer
9 data center. The term "qualified tangible personal
10 property" also includes building materials physically
11 incorporated in to the qualifying data center. To document
12 the exemption allowed under this Section, the retailer
13 must obtain from the purchaser a copy of the certificate
14 of eligibility issued by the Department of Commerce and
15 Economic Opportunity.
16 This item (31) is exempt from the provisions of Section
173-75.
18 (32) Beginning July 1, 2022, breast pumps, breast pump
19collection and storage supplies, and breast pump kits. This
20item (32) is exempt from the provisions of Section 3-75. As
21used in this item (32):
22 "Breast pump" means an electrically controlled or
23 manually controlled pump device designed or marketed to be
24 used to express milk from a human breast during lactation,
25 including the pump device and any battery, AC adapter, or
26 other power supply unit that is used to power the pump

HB3477- 48 -LRB103 27010 HLH 53377 b
1 device and is packaged and sold with the pump device at the
2 time of sale.
3 "Breast pump collection and storage supplies" means
4 items of tangible personal property designed or marketed
5 to be used in conjunction with a breast pump to collect
6 milk expressed from a human breast and to store collected
7 milk until it is ready for consumption.
8 "Breast pump collection and storage supplies"
9 includes, but is not limited to: breast shields and breast
10 shield connectors; breast pump tubes and tubing adapters;
11 breast pump valves and membranes; backflow protectors and
12 backflow protector adaptors; bottles and bottle caps
13 specific to the operation of the breast pump; and breast
14 milk storage bags.
15 "Breast pump collection and storage supplies" does not
16 include: (1) bottles and bottle caps not specific to the
17 operation of the breast pump; (2) breast pump travel bags
18 and other similar carrying accessories, including ice
19 packs, labels, and other similar products; (3) breast pump
20 cleaning supplies; (4) nursing bras, bra pads, breast
21 shells, and other similar products; and (5) creams,
22 ointments, and other similar products that relieve
23 breastfeeding-related symptoms or conditions of the
24 breasts or nipples, unless sold as part of a breast pump
25 kit that is pre-packaged by the breast pump manufacturer
26 or distributor.

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1 "Breast pump kit" means a kit that: (1) contains no
2 more than a breast pump, breast pump collection and
3 storage supplies, a rechargeable battery for operating the
4 breast pump, a breastmilk cooler, bottle stands, ice
5 packs, and a breast pump carrying case; and (2) is
6 pre-packaged as a breast pump kit by the breast pump
7 manufacturer or distributor.
8 (33) (32) Tangible personal property sold by or on behalf
9of the State Treasurer pursuant to the Revised Uniform
10Unclaimed Property Act. This item (33) (32) is exempt from the
11provisions of Section 3-75.
12 (34) Beginning on July 1, 2022, food prepared for
13immediate consumption and transferred incident to a sale of
14service subject to this Act or the Service Occupation Tax Act
15by an entity licensed under the Hospital Licensing Act, the
16Nursing Home Care Act, the Assisted Living and Shared Housing
17Act, the ID/DD Community Care Act, the MC/DD Act, the
18Specialized Mental Health Rehabilitation Act of 2013, or the
19Child Care Act of 1969, or an entity that holds a permit issued
20pursuant to the Life Care Facilities Act, as defined in
21Section 3-10. This item (34) is exempt from the provisions of
22Section 3-75.
23 (35) Beginning on July 1, 2022, food for human consumption
24that is to be consumed off the premises where it is sold, as
25defined in Section 3-10, except excluding alcoholic beverages,
26food consisting of or infused with adult use cannabis, soft

HB3477- 50 -LRB103 27010 HLH 53377 b
1drinks, and food that has been prepared for immediate
2consumption. This item (35) is exempt from the provisions of
3Section 3-75.
4 (36) Beginning on July 1, 2023, the following items, as
5defined in Section 3-10:
6 (A) prescription and nonprescription medicines, drugs,
7 and medical appliances;
8 (B) products classified as Class III medical devices
9 by the United States Food and Drug Administration that are
10 used for cancer treatment pursuant to a prescription, as
11 well as any accessories and components related to those
12 devices;
13 (C) modifications to a motor vehicle for the purpose
14 of rendering it usable by a person with a disability; and
15 (D) insulin, blood sugar testing materials, syringes,
16 and needles used by human diabetics.
17 This item (36) is exempt from the provisions of Section
183-75.
19(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
20101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
2170, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
2275-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
23 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
24 Sec. 3-10. Rate of tax. Unless otherwise provided in this
25Section, the tax imposed by this Act is at the rate of 6.25% of

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1the selling price of tangible personal property transferred as
2an incident to the sale of service, but, for the purpose of
3computing this tax, in no event shall the selling price be less
4than the cost price of the property to the serviceman.
5 Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9 With respect to gasohol, as defined in the Use Tax Act, the
10tax imposed by this Act applies to (i) 70% of the selling price
11of property transferred as an incident to the sale of service
12on or after January 1, 1990, and before July 1, 2003, (ii) 80%
13of the selling price of property transferred as an incident to
14the sale of service on or after July 1, 2003 and on or before
15July 1, 2017, and (iii) 100% of the selling price thereafter.
16If, at any time, however, the tax under this Act on sales of
17gasohol, as defined in the Use Tax Act, is imposed at the rate
18of 1.25%, then the tax imposed by this Act applies to 100% of
19the proceeds of sales of gasohol made during that time.
20 With respect to majority blended ethanol fuel, as defined
21in the Use Tax Act, the tax imposed by this Act does not apply
22to the selling price of property transferred as an incident to
23the sale of service on or after July 1, 2003 and on or before
24December 31, 2023 but applies to 100% of the selling price
25thereafter.
26 With respect to biodiesel blends, as defined in the Use

HB3477- 52 -LRB103 27010 HLH 53377 b
1Tax Act, with no less than 1% and no more than 10% biodiesel,
2the tax imposed by this Act applies to (i) 80% of the selling
3price of property transferred as an incident to the sale of
4service on or after July 1, 2003 and on or before December 31,
52018 and (ii) 100% of the proceeds of the selling price after
6December 31, 2018 and before January 1, 2024. On and after
7January 1, 2024 and on or before December 31, 2030, the
8taxation of biodiesel, renewable diesel, and biodiesel blends
9shall be as provided in Section 3-5.1 of the Use Tax Act. If,
10at any time, however, the tax under this Act on sales of
11biodiesel blends, as defined in the Use Tax Act, with no less
12than 1% and no more than 10% biodiesel is imposed at the rate
13of 1.25%, then the tax imposed by this Act applies to 100% of
14the proceeds of sales of biodiesel blends with no less than 1%
15and no more than 10% biodiesel made during that time.
16 With respect to biodiesel, as defined in the Use Tax Act,
17and biodiesel blends, as defined in the Use Tax Act, with more
18than 10% but no more than 99% biodiesel, the tax imposed by
19this Act does not apply to the proceeds of the selling price of
20property transferred as an incident to the sale of service on
21or after July 1, 2003 and on or before December 31, 2023. On
22and after January 1, 2024 and on or before December 31, 2030,
23the taxation of biodiesel, renewable diesel, and biodiesel
24blends shall be as provided in Section 3-5.1 of the Use Tax
25Act.
26 At the election of any registered serviceman made for each

HB3477- 53 -LRB103 27010 HLH 53377 b
1fiscal year, sales of service in which the aggregate annual
2cost price of tangible personal property transferred as an
3incident to the sales of service is less than 35%, or 75% in
4the case of servicemen transferring prescription drugs or
5servicemen engaged in graphic arts production, of the
6aggregate annual total gross receipts from all sales of
7service, the tax imposed by this Act shall be based on the
8serviceman's cost price of the tangible personal property
9transferred as an incident to the sale of those services.
10 Until July 1, 2022 and beginning again on July 1, 2023, the
11tax shall be imposed at the rate of 1% on food prepared for
12immediate consumption and transferred incident to a sale of
13service subject to this Act or the Service Occupation Tax Act
14by an entity licensed under the Hospital Licensing Act, the
15Nursing Home Care Act, the Assisted Living and Shared Housing
16Act, the ID/DD Community Care Act, the MC/DD Act, the
17Specialized Mental Health Rehabilitation Act of 2013, or the
18Child Care Act of 1969, or an entity that holds a permit issued
19pursuant to the Life Care Facilities Act. Until July 1, 2022
20and beginning again on July 1, 2023, the tax shall also be
21imposed at the rate of 1% on food for human consumption that is
22to be consumed off the premises where it is sold (other than
23alcoholic beverages, food consisting of or infused with adult
24use cannabis, soft drinks, and food that has been prepared for
25immediate consumption and is not otherwise included in this
26paragraph).

HB3477- 54 -LRB103 27010 HLH 53377 b
1 Beginning on July 1, 2022 and until July 1, 2023, the tax
2shall be imposed at the rate of 0% on food prepared for
3immediate consumption and transferred incident to a sale of
4service subject to this Act or the Service Occupation Tax Act
5by an entity licensed under the Hospital Licensing Act, the
6Nursing Home Care Act, the Assisted Living and Shared Housing
7Act, the ID/DD Community Care Act, the MC/DD Act, the
8Specialized Mental Health Rehabilitation Act of 2013, or the
9Child Care Act of 1969, or an entity that holds a permit issued
10pursuant to the Life Care Facilities Act. Beginning on July 1,
112022 and until July 1, 2023, the tax shall also be imposed at
12the rate of 0% on food for human consumption that is to be
13consumed off the premises where it is sold (other than
14alcoholic beverages, food consisting of or infused with adult
15use cannabis, soft drinks, and food that has been prepared for
16immediate consumption and is not otherwise included in this
17paragraph).
18 Until July 1, 2023, the The tax shall also be imposed at
19the rate of 1% on prescription and nonprescription medicines,
20drugs, medical appliances, products classified as Class III
21medical devices by the United States Food and Drug
22Administration that are used for cancer treatment pursuant to
23a prescription, as well as any accessories and components
24related to those devices, modifications to a motor vehicle for
25the purpose of rendering it usable by a person with a
26disability, and insulin, blood sugar testing materials,

HB3477- 55 -LRB103 27010 HLH 53377 b
1syringes, and needles used by human diabetics. For the
2purposes of this Section, until September 1, 2009: the term
3"soft drinks" means any complete, finished, ready-to-use,
4non-alcoholic drink, whether carbonated or not, including, but
5not limited to, soda water, cola, fruit juice, vegetable
6juice, carbonated water, and all other preparations commonly
7known as soft drinks of whatever kind or description that are
8contained in any closed or sealed bottle, can, carton, or
9container, regardless of size; but "soft drinks" does not
10include coffee, tea, non-carbonated water, infant formula,
11milk or milk products as defined in the Grade A Pasteurized
12Milk and Milk Products Act, or drinks containing 50% or more
13natural fruit or vegetable juice.
14 Notwithstanding any other provisions of this Act,
15beginning September 1, 2009, "soft drinks" means non-alcoholic
16beverages that contain natural or artificial sweeteners. "Soft
17drinks" does do not include beverages that contain milk or
18milk products, soy, rice or similar milk substitutes, or
19greater than 50% of vegetable or fruit juice by volume.
20 Until August 1, 2009, and notwithstanding any other
21provisions of this Act, "food for human consumption that is to
22be consumed off the premises where it is sold" includes all
23food sold through a vending machine, except soft drinks and
24food products that are dispensed hot from a vending machine,
25regardless of the location of the vending machine. Beginning
26August 1, 2009, and notwithstanding any other provisions of

HB3477- 56 -LRB103 27010 HLH 53377 b
1this Act, "food for human consumption that is to be consumed
2off the premises where it is sold" includes all food sold
3through a vending machine, except soft drinks, candy, and food
4products that are dispensed hot from a vending machine,
5regardless of the location of the vending machine.
6 Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "food for human consumption that
8is to be consumed off the premises where it is sold" does not
9include candy. For purposes of this Section, "candy" means a
10preparation of sugar, honey, or other natural or artificial
11sweeteners in combination with chocolate, fruits, nuts or
12other ingredients or flavorings in the form of bars, drops, or
13pieces. "Candy" does not include any preparation that contains
14flour or requires refrigeration.
15 Notwithstanding any other provisions of this Act,
16beginning September 1, 2009, "nonprescription medicines and
17drugs" does not include grooming and hygiene products. For
18purposes of this Section, "grooming and hygiene products"
19includes, but is not limited to, soaps and cleaning solutions,
20shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
21lotions and screens, unless those products are available by
22prescription only, regardless of whether the products meet the
23definition of "over-the-counter-drugs". For the purposes of
24this paragraph, "over-the-counter-drug" means a drug for human
25use that contains a label that identifies the product as a drug
26as required by 21 CFR C.F.R. § 201.66. The

HB3477- 57 -LRB103 27010 HLH 53377 b
1"over-the-counter-drug" label includes:
2 (A) a A "Drug Facts" panel; or
3 (B) a A statement of the "active ingredient(s)" with a
4 list of those ingredients contained in the compound,
5 substance or preparation.
6 Beginning on January 1, 2014 (the effective date of Public
7Act 98-122), "prescription and nonprescription medicines and
8drugs" includes medical cannabis purchased from a registered
9dispensing organization under the Compassionate Use of Medical
10Cannabis Program Act.
11 As used in this Section, "adult use cannabis" means
12cannabis subject to tax under the Cannabis Cultivation
13Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
14and does not include cannabis subject to tax under the
15Compassionate Use of Medical Cannabis Program Act.
16 If the property that is acquired from a serviceman is
17acquired outside Illinois and used outside Illinois before
18being brought to Illinois for use here and is taxable under
19this Act, the "selling price" on which the tax is computed
20shall be reduced by an amount that represents a reasonable
21allowance for depreciation for the period of prior
22out-of-state use.
23(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
24102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
2520, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
2660-20, eff. 4-19-22; revised 6-1-22.)

HB3477- 58 -LRB103 27010 HLH 53377 b
1 Section 15. The Service Occupation Tax Act is amended by
2changing Sections 3-5 and 3-10 as follows:
3 (35 ILCS 115/3-5)
4 Sec. 3-5. Exemptions. The following tangible personal
5property is exempt from the tax imposed by this Act:
6 (1) Personal property sold by a corporation, society,
7association, foundation, institution, or organization, other
8than a limited liability company, that is organized and
9operated as a not-for-profit service enterprise for the
10benefit of persons 65 years of age or older if the personal
11property was not purchased by the enterprise for the purpose
12of resale by the enterprise.
13 (2) Personal property purchased by a not-for-profit
14Illinois county fair association for use in conducting,
15operating, or promoting the county fair.
16 (3) Personal property purchased by any not-for-profit arts
17or cultural organization that establishes, by proof required
18by the Department by rule, that it has received an exemption
19under Section 501(c)(3) of the Internal Revenue Code and that
20is organized and operated primarily for the presentation or
21support of arts or cultural programming, activities, or
22services. These organizations include, but are not limited to,
23music and dramatic arts organizations such as symphony
24orchestras and theatrical groups, arts and cultural service

HB3477- 59 -LRB103 27010 HLH 53377 b
1organizations, local arts councils, visual arts organizations,
2and media arts organizations. On and after July 1, 2001 (the
3effective date of Public Act 92-35), however, an entity
4otherwise eligible for this exemption shall not make tax-free
5purchases unless it has an active identification number issued
6by the Department.
7 (4) Legal tender, currency, medallions, or gold or silver
8coinage issued by the State of Illinois, the government of the
9United States of America, or the government of any foreign
10country, and bullion.
11 (5) Until July 1, 2003 and beginning again on September 1,
122004 through August 30, 2014, graphic arts machinery and
13equipment, including repair and replacement parts, both new
14and used, and including that manufactured on special order or
15purchased for lease, certified by the purchaser to be used
16primarily for graphic arts production. Equipment includes
17chemicals or chemicals acting as catalysts but only if the
18chemicals or chemicals acting as catalysts effect a direct and
19immediate change upon a graphic arts product. Beginning on
20July 1, 2017, graphic arts machinery and equipment is included
21in the manufacturing and assembling machinery and equipment
22exemption under Section 2 of this Act.
23 (6) Personal property sold by a teacher-sponsored student
24organization affiliated with an elementary or secondary school
25located in Illinois.
26 (7) Farm machinery and equipment, both new and used,

HB3477- 60 -LRB103 27010 HLH 53377 b
1including that manufactured on special order, certified by the
2purchaser to be used primarily for production agriculture or
3State or federal agricultural programs, including individual
4replacement parts for the machinery and equipment, including
5machinery and equipment purchased for lease, and including
6implements of husbandry defined in Section 1-130 of the
7Illinois Vehicle Code, farm machinery and agricultural
8chemical and fertilizer spreaders, and nurse wagons required
9to be registered under Section 3-809 of the Illinois Vehicle
10Code, but excluding other motor vehicles required to be
11registered under the Illinois Vehicle Code. Horticultural
12polyhouses or hoop houses used for propagating, growing, or
13overwintering plants shall be considered farm machinery and
14equipment under this item (7). Agricultural chemical tender
15tanks and dry boxes shall include units sold separately from a
16motor vehicle required to be licensed and units sold mounted
17on a motor vehicle required to be licensed if the selling price
18of the tender is separately stated.
19 Farm machinery and equipment shall include precision
20farming equipment that is installed or purchased to be
21installed on farm machinery and equipment including, but not
22limited to, tractors, harvesters, sprayers, planters, seeders,
23or spreaders. Precision farming equipment includes, but is not
24limited to, soil testing sensors, computers, monitors,
25software, global positioning and mapping systems, and other
26such equipment.

HB3477- 61 -LRB103 27010 HLH 53377 b
1 Farm machinery and equipment also includes computers,
2sensors, software, and related equipment used primarily in the
3computer-assisted operation of production agriculture
4facilities, equipment, and activities such as, but not limited
5to, the collection, monitoring, and correlation of animal and
6crop data for the purpose of formulating animal diets and
7agricultural chemicals. This item (7) is exempt from the
8provisions of Section 3-55.
9 (8) Until June 30, 2013, fuel and petroleum products sold
10to or used by an air common carrier, certified by the carrier
11to be used for consumption, shipment, or storage in the
12conduct of its business as an air common carrier, for a flight
13destined for or returning from a location or locations outside
14the United States without regard to previous or subsequent
15domestic stopovers.
16 Beginning July 1, 2013, fuel and petroleum products sold
17to or used by an air carrier, certified by the carrier to be
18used for consumption, shipment, or storage in the conduct of
19its business as an air common carrier, for a flight that (i) is
20engaged in foreign trade or is engaged in trade between the
21United States and any of its possessions and (ii) transports
22at least one individual or package for hire from the city of
23origination to the city of final destination on the same
24aircraft, without regard to a change in the flight number of
25that aircraft.
26 (9) Proceeds of mandatory service charges separately

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1stated on customers' bills for the purchase and consumption of
2food and beverages, to the extent that the proceeds of the
3service charge are in fact turned over as tips or as a
4substitute for tips to the employees who participate directly
5in preparing, serving, hosting or cleaning up the food or
6beverage function with respect to which the service charge is
7imposed.
8 (10) Until July 1, 2003, oil field exploration, drilling,
9and production equipment, including (i) rigs and parts of
10rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
11pipe and tubular goods, including casing and drill strings,
12(iii) pumps and pump-jack units, (iv) storage tanks and flow
13lines, (v) any individual replacement part for oil field
14exploration, drilling, and production equipment, and (vi)
15machinery and equipment purchased for lease; but excluding
16motor vehicles required to be registered under the Illinois
17Vehicle Code.
18 (11) Photoprocessing machinery and equipment, including
19repair and replacement parts, both new and used, including
20that manufactured on special order, certified by the purchaser
21to be used primarily for photoprocessing, and including
22photoprocessing machinery and equipment purchased for lease.
23 (12) Until July 1, 2028, coal and aggregate exploration,
24mining, off-highway hauling, processing, maintenance, and
25reclamation equipment, including replacement parts and
26equipment, and including equipment purchased for lease, but

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1excluding motor vehicles required to be registered under the
2Illinois Vehicle Code. The changes made to this Section by
3Public Act 97-767 apply on and after July 1, 2003, but no claim
4for credit or refund is allowed on or after August 16, 2013
5(the effective date of Public Act 98-456) for such taxes paid
6during the period beginning July 1, 2003 and ending on August
716, 2013 (the effective date of Public Act 98-456).
8 (13) Beginning January 1, 1992 and through June 30, 2016,
9food for human consumption that is to be consumed off the
10premises where it is sold (other than alcoholic beverages,
11soft drinks and food that has been prepared for immediate
12consumption) and prescription and non-prescription medicines,
13drugs, medical appliances, and insulin, urine testing
14materials, syringes, and needles used by diabetics, for human
15use, when purchased for use by a person receiving medical
16assistance under Article V of the Illinois Public Aid Code who
17resides in a licensed long-term care facility, as defined in
18the Nursing Home Care Act, or in a licensed facility as defined
19in the ID/DD Community Care Act, the MC/DD Act, or the
20Specialized Mental Health Rehabilitation Act of 2013.
21 (14) Semen used for artificial insemination of livestock
22for direct agricultural production.
23 (15) Horses, or interests in horses, registered with and
24meeting the requirements of any of the Arabian Horse Club
25Registry of America, Appaloosa Horse Club, American Quarter
26Horse Association, United States Trotting Association, or

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1Jockey Club, as appropriate, used for purposes of breeding or
2racing for prizes. This item (15) is exempt from the
3provisions of Section 3-55, and the exemption provided for
4under this item (15) applies for all periods beginning May 30,
51995, but no claim for credit or refund is allowed on or after
6January 1, 2008 (the effective date of Public Act 95-88) for
7such taxes paid during the period beginning May 30, 2000 and
8ending on January 1, 2008 (the effective date of Public Act
995-88).
10 (16) Computers and communications equipment utilized for
11any hospital purpose and equipment used in the diagnosis,
12analysis, or treatment of hospital patients sold to a lessor
13who leases the equipment, under a lease of one year or longer
14executed or in effect at the time of the purchase, to a
15hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of
17the Retailers' Occupation Tax Act.
18 (17) Personal property sold to a lessor who leases the
19property, under a lease of one year or longer executed or in
20effect at the time of the purchase, to a governmental body that
21has been issued an active tax exemption identification number
22by the Department under Section 1g of the Retailers'
23Occupation Tax Act.
24 (18) Beginning with taxable years ending on or after
25December 31, 1995 and ending with taxable years ending on or
26before December 31, 2004, personal property that is donated

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1for disaster relief to be used in a State or federally declared
2disaster area in Illinois or bordering Illinois by a
3manufacturer or retailer that is registered in this State to a
4corporation, society, association, foundation, or institution
5that has been issued a sales tax exemption identification
6number by the Department that assists victims of the disaster
7who reside within the declared disaster area.
8 (19) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is used in
11the performance of infrastructure repairs in this State,
12including but not limited to municipal roads and streets,
13access roads, bridges, sidewalks, waste disposal systems,
14water and sewer line extensions, water distribution and
15purification facilities, storm water drainage and retention
16facilities, and sewage treatment facilities, resulting from a
17State or federally declared disaster in Illinois or bordering
18Illinois when such repairs are initiated on facilities located
19in the declared disaster area within 6 months after the
20disaster.
21 (20) Beginning July 1, 1999, game or game birds sold at a
22"game breeding and hunting preserve area" as that term is used
23in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-55.
25 (21) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

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

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1entity purchases the personal property sold at the events from
2another individual or entity that sold the property for the
3purpose of resale by the fundraising entity and that profits
4from the sale to the fundraising entity. This paragraph is
5exempt from the provisions of Section 3-55.
6 (23) Beginning January 1, 2000 and through December 31,
72001, new or used automatic vending machines that prepare and
8serve hot food and beverages, including coffee, soup, and
9other items, and replacement parts for these machines.
10Beginning January 1, 2002 and through June 30, 2003, machines
11and parts for machines used in commercial, coin-operated
12amusement and vending business if a use or occupation tax is
13paid on the gross receipts derived from the use of the
14commercial, coin-operated amusement and vending machines. This
15paragraph is exempt from the provisions of Section 3-55.
16 (24) Beginning on August 2, 2001 (the effective date of
17Public Act 92-227), computers and communications equipment
18utilized for any hospital purpose and equipment used in the
19diagnosis, analysis, or treatment of hospital patients sold to
20a lessor who leases the equipment, under a lease of one year or
21longer executed or in effect at the time of the purchase, to a
22hospital that has been issued an active tax exemption
23identification number by the Department under Section 1g of
24the Retailers' Occupation Tax Act. This paragraph is exempt
25from the provisions of Section 3-55.
26 (25) Beginning on August 2, 2001 (the effective date of

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1Public Act 92-227), personal property sold to a lessor who
2leases the property, under a lease of one year or longer
3executed or in effect at the time of the purchase, to a
4governmental body that has been issued an active tax exemption
5identification number by the Department under Section 1g of
6the Retailers' Occupation Tax Act. This paragraph is exempt
7from the provisions of Section 3-55.
8 (26) Beginning on January 1, 2002 and through June 30,
92016, tangible personal property purchased from an Illinois
10retailer by a taxpayer engaged in centralized purchasing
11activities in Illinois who will, upon receipt of the property
12in Illinois, temporarily store the property in Illinois (i)
13for the purpose of subsequently transporting it outside this
14State for use or consumption thereafter solely outside this
15State or (ii) for the purpose of being processed, fabricated,
16or manufactured into, attached to, or incorporated into other
17tangible personal property to be transported outside this
18State and thereafter used or consumed solely outside this
19State. The Director of Revenue shall, pursuant to rules
20adopted in accordance with the Illinois Administrative
21Procedure Act, issue a permit to any taxpayer in good standing
22with the Department who is eligible for the exemption under
23this paragraph (26). The permit issued under this paragraph
24(26) shall authorize the holder, to the extent and in the
25manner specified in the rules adopted under this Act, to
26purchase tangible personal property from a retailer exempt

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1from the taxes imposed by this Act. Taxpayers shall maintain
2all necessary books and records to substantiate the use and
3consumption of all such tangible personal property outside of
4the State of Illinois.
5 (27) Beginning January 1, 2008, tangible personal property
6used in the construction or maintenance of a community water
7supply, as defined under Section 3.145 of the Environmental
8Protection Act, that is operated by a not-for-profit
9corporation that holds a valid water supply permit issued
10under Title IV of the Environmental Protection Act. This
11paragraph is exempt from the provisions of Section 3-55.
12 (28) Tangible personal property sold to a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt
21instruments issued by the public-facilities corporation in
22connection with the development of the municipal convention
23hall. This exemption includes existing public-facilities
24corporations as provided in Section 11-65-25 of the Illinois
25Municipal Code. This paragraph is exempt from the provisions
26of Section 3-55.

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

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1Regulations. The changes made to this paragraph (29) by Public
2Act 98-534 are declarative of existing law. It is the intent of
3the General Assembly that the exemption under this paragraph
4(29) applies continuously from January 1, 2010 through
5December 31, 2024; however, no claim for credit or refund is
6allowed for taxes paid as a result of the disallowance of this
7exemption on or after January 1, 2015 and prior to February 5,
82020 (the effective date of Public Act 101-629) this
9amendatory Act of the 101st General Assembly.
10 (30) Beginning January 1, 2017 and through December 31,
112026, menstrual pads, tampons, and menstrual cups.
12 (31) Tangible personal property transferred to a purchaser
13who is exempt from tax by operation of federal law. This
14paragraph is exempt from the provisions of Section 3-55.
15 (32) Qualified tangible personal property used in the
16construction or operation of a data center that has been
17granted a certificate of exemption by the Department of
18Commerce and Economic Opportunity, whether that tangible
19personal property is purchased by the owner, operator, or
20tenant of the data center or by a contractor or subcontractor
21of the owner, operator, or tenant. Data centers that would
22have qualified for a certificate of exemption prior to January
231, 2020 had Public Act 101-31 this amendatory Act of the 101st
24General Assembly been in effect, may apply for and obtain an
25exemption for subsequent purchases of computer equipment or
26enabling software purchased or leased to upgrade, supplement,

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

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

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1 time of sale.
2 "Breast pump collection and storage supplies" means
3 items of tangible personal property designed or marketed
4 to be used in conjunction with a breast pump to collect
5 milk expressed from a human breast and to store collected
6 milk until it is ready for consumption.
7 "Breast pump collection and storage supplies"
8 includes, but is not limited to: breast shields and breast
9 shield connectors; breast pump tubes and tubing adapters;
10 breast pump valves and membranes; backflow protectors and
11 backflow protector adaptors; bottles and bottle caps
12 specific to the operation of the breast pump; and breast
13 milk storage bags.
14 "Breast pump collection and storage supplies" does not
15 include: (1) bottles and bottle caps not specific to the
16 operation of the breast pump; (2) breast pump travel bags
17 and other similar carrying accessories, including ice
18 packs, labels, and other similar products; (3) breast pump
19 cleaning supplies; (4) nursing bras, bra pads, breast
20 shells, and other similar products; and (5) creams,
21 ointments, and other similar products that relieve
22 breastfeeding-related symptoms or conditions of the
23 breasts or nipples, unless sold as part of a breast pump
24 kit that is pre-packaged by the breast pump manufacturer
25 or distributor.
26 "Breast pump kit" means a kit that: (1) contains no

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1 more than a breast pump, breast pump collection and
2 storage supplies, a rechargeable battery for operating the
3 breast pump, a breastmilk cooler, bottle stands, ice
4 packs, and a breast pump carrying case; and (2) is
5 pre-packaged as a breast pump kit by the breast pump
6 manufacturer or distributor.
7 (34) (33) Tangible personal property sold by or on behalf
8of the State Treasurer pursuant to the Revised Uniform
9Unclaimed Property Act. This item (34) (33) is exempt from the
10provisions of Section 3-55.
11 (35) Beginning on July 1, 2022, food prepared for
12immediate consumption and transferred incident to a sale of
13service subject to this Act or the Service Occupation Tax Act
14by an entity licensed under the Hospital Licensing Act, the
15Nursing Home Care Act, the Assisted Living and Shared Housing
16Act, the ID/DD Community Care Act, the MC/DD Act, the
17Specialized Mental Health Rehabilitation Act of 2013, or the
18Child Care Act of 1969, or an entity that holds a permit issued
19pursuant to the Life Care Facilities Act, as defined in
20Section 3-10. This item (35) is exempt from the provisions of
21Section 3-55.
22 (36) Beginning on July 1, 2022, food for human consumption
23that is to be consumed off the premises where it is sold, as
24defined in Section 3-10, except excluding alcoholic beverages,
25food consisting of or infused with adult use cannabis, soft
26drinks, and food that has been prepared for immediate

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1consumption. This item (36) is exempt from the provisions of
2Section 3-55.
3 (37) Beginning on July 1, 2023, the following items, as
4defined in Section 3-10:
5 (A) prescription and nonprescription medicines, drugs,
6 and medical appliances;
7 (B) products classified as Class III medical devices
8 by the United States Food and Drug Administration that are
9 used for cancer treatment pursuant to a prescription, as
10 well as any accessories and components related to those
11 devices;
12 (C) modifications to a motor vehicle for the purpose
13 of rendering it usable by a person with a disability; and
14 (D) insulin, blood sugar testing materials, syringes,
15 and needles used by human diabetics.
16 This item (37) is exempt from the provisions of Section
17 3-55.
18(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
19101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
2070, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2175-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
22 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
23 Sec. 3-10. Rate of tax. Unless otherwise provided in this
24Section, the tax imposed by this Act is at the rate of 6.25% of
25the "selling price", as defined in Section 2 of the Service Use

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1Tax Act, of the tangible personal property. For the purpose of
2computing this tax, in no event shall the "selling price" be
3less than the cost price to the serviceman of the tangible
4personal property transferred. The selling price of each item
5of tangible personal property transferred as an incident of a
6sale of service may be shown as a distinct and separate item on
7the serviceman's billing to the service customer. If the
8selling price is not so shown, the selling price of the
9tangible personal property is deemed to be 50% of the
10serviceman's entire billing to the service customer. When,
11however, a serviceman contracts to design, develop, and
12produce special order machinery or equipment, the tax imposed
13by this Act shall be based on the serviceman's cost price of
14the tangible personal property transferred incident to the
15completion of the contract.
16 Beginning on July 1, 2000 and through December 31, 2000,
17with respect to motor fuel, as defined in Section 1.1 of the
18Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
19the Use Tax Act, the tax is imposed at the rate of 1.25%.
20 With respect to gasohol, as defined in the Use Tax Act, the
21tax imposed by this Act shall apply to (i) 70% of the cost
22price of property transferred as an incident to the sale of
23service on or after January 1, 1990, and before July 1, 2003,
24(ii) 80% of the selling price of property transferred as an
25incident to the sale of service on or after July 1, 2003 and on
26or before July 1, 2017, and (iii) 100% of the cost price

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1thereafter. If, at any time, however, the tax under this Act on
2sales of gasohol, as defined in the Use Tax Act, is imposed at
3the rate of 1.25%, then the tax imposed by this Act applies to
4100% of the proceeds of sales of gasohol made during that time.
5 With respect to majority blended ethanol fuel, as defined
6in the Use Tax Act, the tax imposed by this Act does not apply
7to the selling price of property transferred as an incident to
8the sale of service on or after July 1, 2003 and on or before
9December 31, 2023 but applies to 100% of the selling price
10thereafter.
11 With respect to biodiesel blends, as defined in the Use
12Tax Act, with no less than 1% and no more than 10% biodiesel,
13the tax imposed by this Act applies to (i) 80% of the selling
14price of property transferred as an incident to the sale of
15service on or after July 1, 2003 and on or before December 31,
162018 and (ii) 100% of the proceeds of the selling price after
17December 31, 2018 and before January 1, 2024. On and after
18January 1, 2024 and on or before December 31, 2030, the
19taxation of biodiesel, renewable diesel, and biodiesel blends
20shall be as provided in Section 3-5.1 of the Use Tax Act. If,
21at any time, however, the tax under this Act on sales of
22biodiesel blends, as defined in the Use Tax Act, with no less
23than 1% and no more than 10% biodiesel is imposed at the rate
24of 1.25%, then the tax imposed by this Act applies to 100% of
25the proceeds of sales of biodiesel blends with no less than 1%
26and no more than 10% biodiesel made during that time.

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1 With respect to biodiesel, as defined in the Use Tax Act,
2and biodiesel blends, as defined in the Use Tax Act, with more
3than 10% but no more than 99% biodiesel material, the tax
4imposed by this Act does not apply to the proceeds of the
5selling price of property transferred as an incident to the
6sale of service on or after July 1, 2003 and on or before
7December 31, 2023. On and after January 1, 2024 and on or
8before December 31, 2030, the taxation of biodiesel, renewable
9diesel, and biodiesel blends shall be as provided in Section
103-5.1 of the Use Tax Act.
11 At the election of any registered serviceman made for each
12fiscal year, sales of service in which the aggregate annual
13cost price of tangible personal property transferred as an
14incident to the sales of service is less than 35%, or 75% in
15the case of servicemen transferring prescription drugs or
16servicemen engaged in graphic arts production, of the
17aggregate annual total gross receipts from all sales of
18service, the tax imposed by this Act shall be based on the
19serviceman's cost price of the tangible personal property
20transferred incident to the sale of those services.
21 Until July 1, 2022 and beginning again on July 1, 2023, the
22tax shall be imposed at the rate of 1% on food prepared for
23immediate consumption and transferred incident to a sale of
24service subject to this Act or the Service Use Tax Act by an
25entity licensed under the Hospital Licensing Act, the Nursing
26Home Care Act, the Assisted Living and Shared Housing Act, the

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1ID/DD Community Care Act, the MC/DD Act, the Specialized
2Mental Health Rehabilitation Act of 2013, or the Child Care
3Act of 1969, or an entity that holds a permit issued pursuant
4to the Life Care Facilities Act. Until July 1, 2022 and
5beginning again on July 1, 2023, the tax shall also be imposed
6at the rate of 1% on food for human consumption that is to be
7consumed off the premises where it is sold (other than
8alcoholic beverages, food consisting of or infused with adult
9use cannabis, soft drinks, and food that has been prepared for
10immediate consumption and is not otherwise included in this
11paragraph).
12 Beginning on July 1, 2022 and until July 1, 2023, the tax
13shall be imposed at the rate of 0% on food prepared for
14immediate consumption and transferred incident to a sale of
15service subject to this Act or the Service Use Tax Act by an
16entity licensed under the Hospital Licensing Act, the Nursing
17Home Care Act, the Assisted Living and Shared Housing Act, the
18ID/DD Community Care Act, the MC/DD Act, the Specialized
19Mental Health Rehabilitation Act of 2013, or the Child Care
20Act of 1969, or an entity that holds a permit issued pursuant
21to the Life Care Facilities Act. Beginning July 1, 2022 and
22until July 1, 2023, the tax shall also be imposed at the rate
23of 0% on food for human consumption that is to be consumed off
24the premises where it is sold (other than alcoholic beverages,
25food consisting of or infused with adult use cannabis, soft
26drinks, and food that has been prepared for immediate

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1consumption and is not otherwise included in this paragraph).
2 Until July 1, 2023, the The tax shall also be imposed at
3the rate of 1% on prescription and nonprescription medicines,
4drugs, medical appliances, products classified as Class III
5medical devices by the United States Food and Drug
6Administration that are used for cancer treatment pursuant to
7a prescription, as well as any accessories and components
8related to those devices, modifications to a motor vehicle for
9the purpose of rendering it usable by a person with a
10disability, and insulin, blood sugar testing materials,
11syringes, and needles used by human diabetics. For the
12purposes of this Section, until September 1, 2009: the term
13"soft drinks" means any complete, finished, ready-to-use,
14non-alcoholic drink, whether carbonated or not, including, but
15not limited to, soda water, cola, fruit juice, vegetable
16juice, carbonated water, and all other preparations commonly
17known as soft drinks of whatever kind or description that are
18contained in any closed or sealed can, carton, or container,
19regardless of size; but "soft drinks" does not include coffee,
20tea, non-carbonated water, infant formula, milk or milk
21products as defined in the Grade A Pasteurized Milk and Milk
22Products Act, or drinks containing 50% or more natural fruit
23or vegetable juice.
24 Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "soft drinks" means non-alcoholic
26beverages that contain natural or artificial sweeteners. "Soft

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1drinks" does do not include beverages that contain milk or
2milk products, soy, rice or similar milk substitutes, or
3greater than 50% of vegetable or fruit juice by volume.
4 Until August 1, 2009, and notwithstanding any other
5provisions of this Act, "food for human consumption that is to
6be consumed off the premises where it is sold" includes all
7food sold through a vending machine, except soft drinks and
8food products that are dispensed hot from a vending machine,
9regardless of the location of the vending machine. Beginning
10August 1, 2009, and notwithstanding any other provisions of
11this Act, "food for human consumption that is to be consumed
12off the premises where it is sold" includes all food sold
13through a vending machine, except soft drinks, candy, and food
14products that are dispensed hot from a vending machine,
15regardless of the location of the vending machine.
16 Notwithstanding any other provisions of this Act,
17beginning September 1, 2009, "food for human consumption that
18is to be consumed off the premises where it is sold" does not
19include candy. For purposes of this Section, "candy" means a
20preparation of sugar, honey, or other natural or artificial
21sweeteners in combination with chocolate, fruits, nuts or
22other ingredients or flavorings in the form of bars, drops, or
23pieces. "Candy" does not include any preparation that contains
24flour or requires refrigeration.
25 Notwithstanding any other provisions of this Act,
26beginning September 1, 2009, "nonprescription medicines and

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1drugs" does not include grooming and hygiene products. For
2purposes of this Section, "grooming and hygiene products"
3includes, but is not limited to, soaps and cleaning solutions,
4shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
5lotions and screens, unless those products are available by
6prescription only, regardless of whether the products meet the
7definition of "over-the-counter-drugs". For the purposes of
8this paragraph, "over-the-counter-drug" means a drug for human
9use that contains a label that identifies the product as a drug
10as required by 21 CFR C.F.R. § 201.66. The
11"over-the-counter-drug" label includes:
12 (A) a A "Drug Facts" panel; or
13 (B) a A statement of the "active ingredient(s)" with a
14 list of those ingredients contained in the compound,
15 substance or preparation.
16 Beginning on January 1, 2014 (the effective date of Public
17Act 98-122), "prescription and nonprescription medicines and
18drugs" includes medical cannabis purchased from a registered
19dispensing organization under the Compassionate Use of Medical
20Cannabis Program Act.
21 As used in this Section, "adult use cannabis" means
22cannabis subject to tax under the Cannabis Cultivation
23Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
24and does not include cannabis subject to tax under the
25Compassionate Use of Medical Cannabis Program Act.
26(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;

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1102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
220, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
360-25, eff. 4-19-22; revised 6-1-22.)
4 Section 20. The Retailers' Occupation Tax Act is amended
5by changing Sections 2-5 and 2-10 as follows:
6 (35 ILCS 120/2-5)
7 Sec. 2-5. Exemptions. Gross receipts from proceeds from
8the sale of the following tangible personal property are
9exempt from the tax imposed by this Act:
10 (1) Farm chemicals.
11 (2) Farm machinery and equipment, both new and used,
12 including that manufactured on special order, certified by
13 the purchaser to be used primarily for production
14 agriculture or State or federal agricultural programs,
15 including individual replacement parts for the machinery
16 and equipment, including machinery and equipment purchased
17 for lease, and including implements of husbandry defined
18 in Section 1-130 of the Illinois Vehicle Code, farm
19 machinery and agricultural chemical and fertilizer
20 spreaders, and nurse wagons required to be registered
21 under Section 3-809 of the Illinois Vehicle Code, but
22 excluding other motor vehicles required to be registered
23 under the Illinois Vehicle Code. Horticultural polyhouses
24 or hoop houses used for propagating, growing, or

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1 overwintering plants shall be considered farm machinery
2 and equipment under this item (2). Agricultural chemical
3 tender tanks and dry boxes shall include units sold
4 separately from a motor vehicle required to be licensed
5 and units sold mounted on a motor vehicle required to be
6 licensed, if the selling price of the tender is separately
7 stated.
8 Farm machinery and equipment shall include precision
9 farming equipment that is installed or purchased to be
10 installed on farm machinery and equipment including, but
11 not limited to, tractors, harvesters, sprayers, planters,
12 seeders, or spreaders. Precision farming equipment
13 includes, but is not limited to, soil testing sensors,
14 computers, monitors, software, global positioning and
15 mapping systems, and other such equipment.
16 Farm machinery and equipment also includes computers,
17 sensors, software, and related equipment used primarily in
18 the computer-assisted operation of production agriculture
19 facilities, equipment, and activities such as, but not
20 limited to, the collection, monitoring, and correlation of
21 animal and crop data for the purpose of formulating animal
22 diets and agricultural chemicals. This item (2) is exempt
23 from the provisions of Section 2-70.
24 (3) Until July 1, 2003, distillation machinery and
25 equipment, sold as a unit or kit, assembled or installed
26 by the retailer, certified by the user to be used only for

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1 the production of ethyl alcohol that will be used for
2 consumption as motor fuel or as a component of motor fuel
3 for the personal use of the user, and not subject to sale
4 or resale.
5 (4) Until July 1, 2003 and beginning again September
6 1, 2004 through August 30, 2014, graphic arts machinery
7 and equipment, including repair and replacement parts,
8 both new and used, and including that manufactured on
9 special order or purchased for lease, certified by the
10 purchaser to be used primarily for graphic arts
11 production. Equipment includes chemicals or chemicals
12 acting as catalysts but only if the chemicals or chemicals
13 acting as catalysts effect a direct and immediate change
14 upon a graphic arts product. Beginning on July 1, 2017,
15 graphic arts machinery and equipment is included in the
16 manufacturing and assembling machinery and equipment
17 exemption under paragraph (14).
18 (5) A motor vehicle that is used for automobile
19 renting, as defined in the Automobile Renting Occupation
20 and Use Tax Act. This paragraph is exempt from the
21 provisions of Section 2-70.
22 (6) Personal property sold by a teacher-sponsored
23 student organization affiliated with an elementary or
24 secondary school located in Illinois.
25 (7) Until July 1, 2003, proceeds of that portion of
26 the selling price of a passenger car the sale of which is

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1 subject to the Replacement Vehicle Tax.
2 (8) Personal property sold to an Illinois county fair
3 association for use in conducting, operating, or promoting
4 the county fair.
5 (9) Personal property sold to a not-for-profit arts or
6 cultural organization that establishes, by proof required
7 by the Department by rule, that it has received an
8 exemption under Section 501(c)(3) of the Internal Revenue
9 Code and that is organized and operated primarily for the
10 presentation or support of arts or cultural programming,
11 activities, or services. These organizations include, but
12 are not limited to, music and dramatic arts organizations
13 such as symphony orchestras and theatrical groups, arts
14 and cultural service organizations, local arts councils,
15 visual arts organizations, and media arts organizations.
16 On and after July 1, 2001 (the effective date of Public Act
17 92-35), however, an entity otherwise eligible for this
18 exemption shall not make tax-free purchases unless it has
19 an active identification number issued by the Department.
20 (10) Personal property sold by a corporation, society,
21 association, foundation, institution, or organization,
22 other than a limited liability company, that is organized
23 and operated as a not-for-profit service enterprise for
24 the benefit of persons 65 years of age or older if the
25 personal property was not purchased by the enterprise for
26 the purpose of resale by the enterprise.

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1 (11) Personal property sold to a governmental body, to
2 a corporation, society, association, foundation, or
3 institution organized and operated exclusively for
4 charitable, religious, or educational purposes, or to a
5 not-for-profit corporation, society, association,
6 foundation, institution, or organization that has no
7 compensated officers or employees and that is organized
8 and operated primarily for the recreation of persons 55
9 years of age or older. A limited liability company may
10 qualify for the exemption under this paragraph only if the
11 limited liability company is organized and operated
12 exclusively for educational purposes. On and after July 1,
13 1987, however, no entity otherwise eligible for this
14 exemption shall make tax-free purchases unless it has an
15 active identification number issued by the Department.
16 (12) (Blank).
17 (12-5) On and after July 1, 2003 and through June 30,
18 2004, motor vehicles of the second division with a gross
19 vehicle weight in excess of 8,000 pounds that are subject
20 to the commercial distribution fee imposed under Section
21 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
22 2004 and through June 30, 2005, the use in this State of
23 motor vehicles of the second division: (i) with a gross
24 vehicle weight rating in excess of 8,000 pounds; (ii) that
25 are subject to the commercial distribution fee imposed
26 under Section 3-815.1 of the Illinois Vehicle Code; and

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1 (iii) that are primarily used for commercial purposes.
2 Through June 30, 2005, this exemption applies to repair
3 and replacement parts added after the initial purchase of
4 such a motor vehicle if that motor vehicle is used in a
5 manner that would qualify for the rolling stock exemption
6 otherwise provided for in this Act. For purposes of this
7 paragraph, "used for commercial purposes" means the
8 transportation of persons or property in furtherance of
9 any commercial or industrial enterprise whether for-hire
10 or not.
11 (13) Proceeds from sales to owners, lessors, or
12 shippers of tangible personal property that is utilized by
13 interstate carriers for hire for use as rolling stock
14 moving in interstate commerce and equipment operated by a
15 telecommunications provider, licensed as a common carrier
16 by the Federal Communications Commission, which is
17 permanently installed in or affixed to aircraft moving in
18 interstate commerce.
19 (14) Machinery and equipment that will be used by the
20 purchaser, or a lessee of the purchaser, primarily in the
21 process of manufacturing or assembling tangible personal
22 property for wholesale or retail sale or lease, whether
23 the sale or lease is made directly by the manufacturer or
24 by some other person, whether the materials used in the
25 process are owned by the manufacturer or some other
26 person, or whether the sale or lease is made apart from or

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1 as an incident to the seller's engaging in the service
2 occupation of producing machines, tools, dies, jigs,
3 patterns, gauges, or other similar items of no commercial
4 value on special order for a particular purchaser. The
5 exemption provided by this paragraph (14) does not include
6 machinery and equipment used in (i) the generation of
7 electricity for wholesale or retail sale; (ii) the
8 generation or treatment of natural or artificial gas for
9 wholesale or retail sale that is delivered to customers
10 through pipes, pipelines, or mains; or (iii) the treatment
11 of water for wholesale or retail sale that is delivered to
12 customers through pipes, pipelines, or mains. The
13 provisions of Public Act 98-583 are declaratory of
14 existing law as to the meaning and scope of this
15 exemption. Beginning on July 1, 2017, the exemption
16 provided by this paragraph (14) includes, but is not
17 limited to, graphic arts machinery and equipment, as
18 defined in paragraph (4) of this Section.
19 (15) Proceeds of mandatory service charges separately
20 stated on customers' bills for purchase and consumption of
21 food and beverages, to the extent that the proceeds of the
22 service charge are in fact turned over as tips or as a
23 substitute for tips to the employees who participate
24 directly in preparing, serving, hosting or cleaning up the
25 food or beverage function with respect to which the
26 service charge is imposed.

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1 (16) Tangible personal property sold to a purchaser if
2 the purchaser is exempt from use tax by operation of
3 federal law. This paragraph is exempt from the provisions
4 of Section 2-70.
5 (17) Tangible personal property sold to a common
6 carrier by rail or motor that receives the physical
7 possession of the property in Illinois and that transports
8 the property, or shares with another common carrier in the
9 transportation of the property, out of Illinois on a
10 standard uniform bill of lading showing the seller of the
11 property as the shipper or consignor of the property to a
12 destination outside Illinois, for use outside Illinois.
13 (18) Legal tender, currency, medallions, or gold or
14 silver coinage issued by the State of Illinois, the
15 government of the United States of America, or the
16 government of any foreign country, and bullion.
17 (19) Until July 1, 2003, oil field exploration,
18 drilling, and production equipment, including (i) rigs and
19 parts of rigs, rotary rigs, cable tool rigs, and workover
20 rigs, (ii) pipe and tubular goods, including casing and
21 drill strings, (iii) pumps and pump-jack units, (iv)
22 storage tanks and flow lines, (v) any individual
23 replacement part for oil field exploration, drilling, and
24 production equipment, and (vi) machinery and equipment
25 purchased for lease; but excluding motor vehicles required
26 to be registered under the Illinois Vehicle Code.

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1 (20) Photoprocessing machinery and equipment,
2 including repair and replacement parts, both new and used,
3 including that manufactured on special order, certified by
4 the purchaser to be used primarily for photoprocessing,
5 and including photoprocessing machinery and equipment
6 purchased for lease.
7 (21) Until July 1, 2028, coal and aggregate
8 exploration, mining, off-highway hauling, processing,
9 maintenance, and reclamation equipment, including
10 replacement parts and equipment, and including equipment
11 purchased for lease, but excluding motor vehicles required
12 to be registered under the Illinois Vehicle Code. The
13 changes made to this Section by Public Act 97-767 apply on
14 and after July 1, 2003, but no claim for credit or refund
15 is allowed on or after August 16, 2013 (the effective date
16 of Public Act 98-456) for such taxes paid during the
17 period beginning July 1, 2003 and ending on August 16,
18 2013 (the effective date of Public Act 98-456).
19 (22) Until June 30, 2013, fuel and petroleum products
20 sold to or used by an air carrier, certified by the carrier
21 to be used for consumption, shipment, or storage in the
22 conduct of its business as an air common carrier, for a
23 flight destined for or returning from a location or
24 locations outside the United States without regard to
25 previous or subsequent domestic stopovers.
26 Beginning July 1, 2013, fuel and petroleum products

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1 sold to or used by an air carrier, certified by the carrier
2 to be used for consumption, shipment, or storage in the
3 conduct of its business as an air common carrier, for a
4 flight that (i) is engaged in foreign trade or is engaged
5 in trade between the United States and any of its
6 possessions and (ii) transports at least one individual or
7 package for hire from the city of origination to the city
8 of final destination on the same aircraft, without regard
9 to a change in the flight number of that aircraft.
10 (23) A transaction in which the purchase order is
11 received by a florist who is located outside Illinois, but
12 who has a florist located in Illinois deliver the property
13 to the purchaser or the purchaser's donee in Illinois.
14 (24) Fuel consumed or used in the operation of ships,
15 barges, or vessels that are used primarily in or for the
16 transportation of property or the conveyance of persons
17 for hire on rivers bordering on this State if the fuel is
18 delivered by the seller to the purchaser's barge, ship, or
19 vessel while it is afloat upon that bordering river.
20 (25) Except as provided in item (25-5) of this
21 Section, a motor vehicle sold in this State to a
22 nonresident even though the motor vehicle is delivered to
23 the nonresident in this State, if the motor vehicle is not
24 to be titled in this State, and if a drive-away permit is
25 issued to the motor vehicle as provided in Section 3-603
26 of the Illinois Vehicle Code or if the nonresident

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1 purchaser has vehicle registration plates to transfer to
2 the motor vehicle upon returning to his or her home state.
3 The issuance of the drive-away permit or having the
4 out-of-state registration plates to be transferred is
5 prima facie evidence that the motor vehicle will not be
6 titled in this State.
7 (25-5) The exemption under item (25) does not apply if
8 the state in which the motor vehicle will be titled does
9 not allow a reciprocal exemption for a motor vehicle sold
10 and delivered in that state to an Illinois resident but
11 titled in Illinois. The tax collected under this Act on
12 the sale of a motor vehicle in this State to a resident of
13 another state that does not allow a reciprocal exemption
14 shall be imposed at a rate equal to the state's rate of tax
15 on taxable property in the state in which the purchaser is
16 a resident, except that the tax shall not exceed the tax
17 that would otherwise be imposed under this Act. At the
18 time of the sale, the purchaser shall execute a statement,
19 signed under penalty of perjury, of his or her intent to
20 title the vehicle in the state in which the purchaser is a
21 resident within 30 days after the sale and of the fact of
22 the payment to the State of Illinois of tax in an amount
23 equivalent to the state's rate of tax on taxable property
24 in his or her state of residence and shall submit the
25 statement to the appropriate tax collection agency in his
26 or her state of residence. In addition, the retailer must

HB3477- 95 -LRB103 27010 HLH 53377 b
1 retain a signed copy of the statement in his or her
2 records. Nothing in this item shall be construed to
3 require the removal of the vehicle from this state
4 following the filing of an intent to title the vehicle in
5 the purchaser's state of residence if the purchaser titles
6 the vehicle in his or her state of residence within 30 days
7 after the date of sale. The tax collected under this Act in
8 accordance with this item (25-5) shall be proportionately
9 distributed as if the tax were collected at the 6.25%
10 general rate imposed under this Act.
11 (25-7) Beginning on July 1, 2007, no tax is imposed
12 under this Act on the sale of an aircraft, as defined in
13 Section 3 of the Illinois Aeronautics Act, if all of the
14 following conditions are met:
15 (1) the aircraft leaves this State within 15 days
16 after the later of either the issuance of the final
17 billing for the sale of the aircraft, or the
18 authorized approval for return to service, completion
19 of the maintenance record entry, and completion of the
20 test flight and ground test for inspection, as
21 required by 14 CFR C.F.R. 91.407;
22 (2) the aircraft is not based or registered in
23 this State after the sale of the aircraft; and
24 (3) the seller retains in his or her books and
25 records and provides to the Department a signed and
26 dated certification from the purchaser, on a form

HB3477- 96 -LRB103 27010 HLH 53377 b
1 prescribed by the Department, certifying that the
2 requirements of this item (25-7) are met. The
3 certificate must also include the name and address of
4 the purchaser, the address of the location where the
5 aircraft is to be titled or registered, the address of
6 the primary physical location of the aircraft, and
7 other information that the Department may reasonably
8 require.
9 For purposes of this item (25-7):
10 "Based in this State" means hangared, stored, or
11 otherwise used, excluding post-sale customizations as
12 defined in this Section, for 10 or more days in each
13 12-month period immediately following the date of the sale
14 of the aircraft.
15 "Registered in this State" means an aircraft
16 registered with the Department of Transportation,
17 Aeronautics Division, or titled or registered with the
18 Federal Aviation Administration to an address located in
19 this State.
20 This paragraph (25-7) is exempt from the provisions of
21 Section 2-70.
22 (26) Semen used for artificial insemination of
23 livestock for direct agricultural production.
24 (27) Horses, or interests in horses, registered with
25 and meeting the requirements of any of the Arabian Horse
26 Club Registry of America, Appaloosa Horse Club, American

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

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

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1 exempt from the provisions of Section 2-70.
2 (33) A motor vehicle, as that term is defined in
3 Section 1-146 of the Illinois Vehicle Code, that is
4 donated to a corporation, limited liability company,
5 society, association, foundation, or institution that is
6 determined by the Department to be organized and operated
7 exclusively for educational purposes. For purposes of this
8 exemption, "a corporation, limited liability company,
9 society, association, foundation, or institution organized
10 and operated exclusively for educational purposes" means
11 all tax-supported public schools, private schools that
12 offer systematic instruction in useful branches of
13 learning by methods common to public schools and that
14 compare favorably in their scope and intensity with the
15 course of study presented in tax-supported schools, and
16 vocational or technical schools or institutes organized
17 and operated exclusively to provide a course of study of
18 not less than 6 weeks duration and designed to prepare
19 individuals to follow a trade or to pursue a manual,
20 technical, mechanical, industrial, business, or commercial
21 occupation.
22 (34) Beginning January 1, 2000, personal property,
23 including food, purchased through fundraising events for
24 the benefit of a public or private elementary or secondary
25 school, a group of those schools, or one or more school
26 districts if the events are sponsored by an entity

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1 recognized by the school district that consists primarily
2 of volunteers and includes parents and teachers of the
3 school children. This paragraph does not apply to
4 fundraising events (i) for the benefit of private home
5 instruction or (ii) for which the fundraising entity
6 purchases the personal property sold at the events from
7 another individual or entity that sold the property for
8 the purpose of resale by the fundraising entity and that
9 profits from the sale to the fundraising entity. This
10 paragraph is exempt from the provisions of Section 2-70.
11 (35) Beginning January 1, 2000 and through December
12 31, 2001, new or used automatic vending machines that
13 prepare and serve hot food and beverages, including
14 coffee, soup, and other items, and replacement parts for
15 these machines. Beginning January 1, 2002 and through June
16 30, 2003, machines and parts for machines used in
17 commercial, coin-operated amusement and vending business
18 if a use or occupation tax is paid on the gross receipts
19 derived from the use of the commercial, coin-operated
20 amusement and vending machines. This paragraph is exempt
21 from the provisions of Section 2-70.
22 (35-5) Beginning August 23, 2001 and through June 30,
23 2016, food for human consumption that is to be consumed
24 off the premises where it is sold (other than alcoholic
25 beverages, soft drinks, and food that has been prepared
26 for immediate consumption) and prescription and

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

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1 (38) Beginning on January 1, 2002 and through June 30,
2 2016, tangible personal property purchased from an
3 Illinois retailer by a taxpayer engaged in centralized
4 purchasing activities in Illinois who will, upon receipt
5 of the property in Illinois, temporarily store the
6 property in Illinois (i) for the purpose of subsequently
7 transporting it outside this State for use or consumption
8 thereafter solely outside this State or (ii) for the
9 purpose of being processed, fabricated, or manufactured
10 into, attached to, or incorporated into other tangible
11 personal property to be transported outside this State and
12 thereafter used or consumed solely outside this State. The
13 Director of Revenue shall, pursuant to rules adopted in
14 accordance with the Illinois Administrative Procedure Act,
15 issue a permit to any taxpayer in good standing with the
16 Department who is eligible for the exemption under this
17 paragraph (38). The permit issued under this paragraph
18 (38) shall authorize the holder, to the extent and in the
19 manner specified in the rules adopted under this Act, to
20 purchase tangible personal property from a retailer exempt
21 from the taxes imposed by this Act. Taxpayers shall
22 maintain all necessary books and records to substantiate
23 the use and consumption of all such tangible personal
24 property outside of the State of Illinois.
25 (39) Beginning January 1, 2008, tangible personal
26 property used in the construction or maintenance of a

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1 community water supply, as defined under Section 3.145 of
2 the Environmental Protection Act, that is operated by a
3 not-for-profit corporation that holds a valid water supply
4 permit issued under Title IV of the Environmental
5 Protection Act. This paragraph is exempt from the
6 provisions of Section 2-70.
7 (40) Beginning January 1, 2010 and continuing through
8 December 31, 2024, materials, parts, equipment,
9 components, and furnishings incorporated into or upon an
10 aircraft as part of the modification, refurbishment,
11 completion, replacement, repair, or maintenance of the
12 aircraft. This exemption includes consumable supplies used
13 in the modification, refurbishment, completion,
14 replacement, repair, and maintenance of aircraft, but
15 excludes any materials, parts, equipment, components, and
16 consumable supplies used in the modification, replacement,
17 repair, and maintenance of aircraft engines or power
18 plants, whether such engines or power plants are installed
19 or uninstalled upon any such aircraft. "Consumable
20 supplies" include, but are not limited to, adhesive, tape,
21 sandpaper, general purpose lubricants, cleaning solution,
22 latex gloves, and protective films. This exemption applies
23 only to the sale of qualifying tangible personal property
24 to persons who modify, refurbish, complete, replace, or
25 maintain an aircraft and who (i) hold an Air Agency
26 Certificate and are empowered to operate an approved

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1 repair station by the Federal Aviation Administration,
2 (ii) have a Class IV Rating, and (iii) conduct operations
3 in accordance with Part 145 of the Federal Aviation
4 Regulations. The exemption does not include aircraft
5 operated by a commercial air carrier providing scheduled
6 passenger air service pursuant to authority issued under
7 Part 121 or Part 129 of the Federal Aviation Regulations.
8 The changes made to this paragraph (40) by Public Act
9 98-534 are declarative of existing law. It is the intent
10 of the General Assembly that the exemption under this
11 paragraph (40) applies continuously from January 1, 2010
12 through December 31, 2024; however, no claim for credit or
13 refund is allowed for taxes paid as a result of the
14 disallowance of this exemption on or after January 1, 2015
15 and prior to February 5, 2020 (the effective date of
16 Public Act 101-629) this amendatory Act of the 101st
17 General Assembly.
18 (41) Tangible personal property sold to a
19 public-facilities corporation, as described in Section
20 11-65-10 of the Illinois Municipal Code, for purposes of
21 constructing or furnishing a municipal convention hall,
22 but only if the legal title to the municipal convention
23 hall is transferred to the municipality without any
24 further consideration by or on behalf of the municipality
25 at the time of the completion of the municipal convention
26 hall or upon the retirement or redemption of any bonds or

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1 other debt instruments issued by the public-facilities
2 corporation in connection with the development of the
3 municipal convention hall. This exemption includes
4 existing public-facilities corporations as provided in
5 Section 11-65-25 of the Illinois Municipal Code. This
6 paragraph is exempt from the provisions of Section 2-70.
7 (42) Beginning January 1, 2017 and through December
8 31, 2026, menstrual pads, tampons, and menstrual cups.
9 (43) Merchandise that is subject to the Rental
10 Purchase Agreement Occupation and Use Tax. The purchaser
11 must certify that the item is purchased to be rented
12 subject to a rental purchase agreement, as defined in the
13 Rental Purchase Agreement Act, and provide proof of
14 registration under the Rental Purchase Agreement
15 Occupation and Use Tax Act. This paragraph is exempt from
16 the provisions of Section 2-70.
17 (44) Qualified tangible personal property used in the
18 construction or operation of a data center that has been
19 granted a certificate of exemption by the Department of
20 Commerce and Economic Opportunity, whether that tangible
21 personal property is purchased by the owner, operator, or
22 tenant of the data center or by a contractor or
23 subcontractor of the owner, operator, or tenant. Data
24 centers that would have qualified for a certificate of
25 exemption prior to January 1, 2020 had Public Act 101-31
26 this amendatory Act of the 101st General Assembly been in

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1 effect, may apply for and obtain an exemption for
2 subsequent purchases of computer equipment or enabling
3 software purchased or leased to upgrade, supplement, or
4 replace computer equipment or enabling software purchased
5 or leased in the original investment that would have
6 qualified.
7 The Department of Commerce and Economic Opportunity
8 shall grant a certificate of exemption under this item
9 (44) to qualified data centers as defined by Section
10 605-1025 of the Department of Commerce and Economic
11 Opportunity Law of the Civil Administrative Code of
12 Illinois.
13 For the purposes of this item (44):
14 "Data center" means a building or a series of
15 buildings rehabilitated or constructed to house
16 working servers in one physical location or multiple
17 sites within the State of Illinois.
18 "Qualified tangible personal property" means:
19 electrical systems and equipment; climate control and
20 chilling equipment and systems; mechanical systems and
21 equipment; monitoring and secure systems; emergency
22 generators; hardware; computers; servers; data storage
23 devices; network connectivity equipment; racks;
24 cabinets; telecommunications cabling infrastructure;
25 raised floor systems; peripheral components or
26 systems; software; mechanical, electrical, or plumbing

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1 systems; battery systems; cooling systems and towers;
2 temperature control systems; other cabling; and other
3 data center infrastructure equipment and systems
4 necessary to operate qualified tangible personal
5 property, including fixtures; and component parts of
6 any of the foregoing, including installation,
7 maintenance, repair, refurbishment, and replacement of
8 qualified tangible personal property to generate,
9 transform, transmit, distribute, or manage electricity
10 necessary to operate qualified tangible personal
11 property; and all other tangible personal property
12 that is essential to the operations of a computer data
13 center. The term "qualified tangible personal
14 property" also includes building materials physically
15 incorporated into the qualifying data center. To
16 document the exemption allowed under this Section, the
17 retailer must obtain from the purchaser a copy of the
18 certificate of eligibility issued by the Department of
19 Commerce and Economic Opportunity.
20 This item (44) is exempt from the provisions of
21 Section 2-70.
22 (45) Beginning January 1, 2020 and through December
23 31, 2020, sales of tangible personal property made by a
24 marketplace seller over a marketplace for which tax is due
25 under this Act but for which use tax has been collected and
26 remitted to the Department by a marketplace facilitator

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

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1 milk expressed from a human breast and to store collected
2 milk until it is ready for consumption.
3 "Breast pump collection and storage supplies"
4 includes, but is not limited to: breast shields and breast
5 shield connectors; breast pump tubes and tubing adapters;
6 breast pump valves and membranes; backflow protectors and
7 backflow protector adaptors; bottles and bottle caps
8 specific to the operation of the breast pump; and breast
9 milk storage bags.
10 "Breast pump collection and storage supplies" does not
11 include: (1) bottles and bottle caps not specific to the
12 operation of the breast pump; (2) breast pump travel bags
13 and other similar carrying accessories, including ice
14 packs, labels, and other similar products; (3) breast pump
15 cleaning supplies; (4) nursing bras, bra pads, breast
16 shells, and other similar products; and (5) creams,
17 ointments, and other similar products that relieve
18 breastfeeding-related symptoms or conditions of the
19 breasts or nipples, unless sold as part of a breast pump
20 kit that is pre-packaged by the breast pump manufacturer
21 or distributor.
22 "Breast pump kit" means a kit that: (1) contains no
23 more than a breast pump, breast pump collection and
24 storage supplies, a rechargeable battery for operating the
25 breast pump, a breastmilk cooler, bottle stands, ice
26 packs, and a breast pump carrying case; and (2) is

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1 pre-packaged as a breast pump kit by the breast pump
2 manufacturer or distributor.
3 (47) (46) Tangible personal property sold by or on
4 behalf of the State Treasurer pursuant to the Revised
5 Uniform Unclaimed Property Act. This item (47) (46) is
6 exempt from the provisions of Section 2-70.
7 (48) Beginning on July 1, 2022, food for human consumption
8that is to be consumed off the premises where it is sold, as
9defined in Section 2-10, except excluding alcoholic beverages,
10food consisting of or infused with adult use cannabis, soft
11drinks, and food that has been prepared for immediate
12consumption. This item (48) is exempt from the provisions of
13Section 2-70.
14 (49) Beginning on July 1, 2023, the following items, as
15defined in Section 2-10:
16 (A) prescription and nonprescription medicines, drugs,
17 and medical appliances;
18 (B) products classified as Class III medical devices
19 by the United States Food and Drug Administration that are
20 used for cancer treatment pursuant to a prescription, as
21 well as any accessories and components related to those
22 devices;
23 (C) modifications to a motor vehicle for the purpose
24 of rendering it usable by a person with a disability; and
25 (D) insulin, blood sugar testing materials, syringes,
26 and needles used by human diabetics.

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1 This item (49) is exempt from the provisions of Section
22-70.
3(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
4101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
58-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
6102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
7eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
8 (35 ILCS 120/2-10)
9 Sec. 2-10. Rate of tax. Unless otherwise provided in this
10Section, the tax imposed by this Act is at the rate of 6.25% of
11gross receipts from sales of tangible personal property made
12in the course of business.
13 Beginning on July 1, 2000 and through December 31, 2000,
14with respect to motor fuel, as defined in Section 1.1 of the
15Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16the Use Tax Act, the tax is imposed at the rate of 1.25%.
17 Beginning on August 6, 2010 through August 15, 2010, and
18beginning again on August 5, 2022 through August 14, 2022,
19with respect to sales tax holiday items as defined in Section
202-8 of this Act, the tax is imposed at the rate of 1.25%.
21 Within 14 days after July 1, 2000 (the effective date of
22Public Act 91-872) this amendatory Act of the 91st General
23Assembly, each retailer of motor fuel and gasohol shall cause
24the following notice to be posted in a prominently visible
25place on each retail dispensing device that is used to

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1dispense motor fuel or gasohol in the State of Illinois: "As of
2July 1, 2000, the State of Illinois has eliminated the State's
3share of sales tax on motor fuel and gasohol through December
431, 2000. The price on this pump should reflect the
5elimination of the tax." The notice shall be printed in bold
6print on a sign that is no smaller than 4 inches by 8 inches.
7The sign shall be clearly visible to customers. Any retailer
8who fails to post or maintain a required sign through December
931, 2000 is guilty of a petty offense for which the fine shall
10be $500 per day per each retail premises where a violation
11occurs.
12 With respect to gasohol, as defined in the Use Tax Act, the
13tax imposed by this Act applies to (i) 70% of the proceeds of
14sales made on or after January 1, 1990, and before July 1,
152003, (ii) 80% of the proceeds of sales made on or after July
161, 2003 and on or before July 1, 2017, and (iii) 100% of the
17proceeds of sales made thereafter. If, at any time, however,
18the tax under this Act on sales of gasohol, as defined in the
19Use Tax Act, is imposed at the rate of 1.25%, then the tax
20imposed by this Act applies to 100% of the proceeds of sales of
21gasohol made during that time.
22 With respect to majority blended ethanol fuel, as defined
23in the Use Tax Act, the tax imposed by this Act does not apply
24to the proceeds of sales made on or after July 1, 2003 and on
25or before December 31, 2023 but applies to 100% of the proceeds
26of sales made thereafter.

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1 With respect to biodiesel blends, as defined in the Use
2Tax Act, with no less than 1% and no more than 10% biodiesel,
3the tax imposed by this Act applies to (i) 80% of the proceeds
4of sales made on or after July 1, 2003 and on or before
5December 31, 2018 and (ii) 100% of the proceeds of sales made
6after December 31, 2018 and before January 1, 2024. On and
7after January 1, 2024 and on or before December 31, 2030, the
8taxation of biodiesel, renewable diesel, and biodiesel blends
9shall be as provided in Section 3-5.1 of the Use Tax Act. If,
10at any time, however, the tax under this Act on sales of
11biodiesel blends, as defined in the Use Tax Act, with no less
12than 1% and no more than 10% biodiesel is imposed at the rate
13of 1.25%, then the tax imposed by this Act applies to 100% of
14the proceeds of sales of biodiesel blends with no less than 1%
15and no more than 10% biodiesel made during that time.
16 With respect to biodiesel, as defined in the Use Tax Act,
17and biodiesel blends, as defined in the Use Tax Act, with more
18than 10% but no more than 99% biodiesel, the tax imposed by
19this Act does not apply to the proceeds of sales made on or
20after July 1, 2003 and on or before December 31, 2023. On and
21after January 1, 2024 and on or before December 31, 2030, the
22taxation of biodiesel, renewable diesel, and biodiesel blends
23shall be as provided in Section 3-5.1 of the Use Tax Act.
24 Until July 1, 2022 and beginning again on July 1, 2023,
25with respect to food for human consumption that is to be
26consumed off the premises where it is sold (other than

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1alcoholic beverages, food consisting of or infused with adult
2use cannabis, soft drinks, and food that has been prepared for
3immediate consumption), the tax is imposed at the rate of 1%.
4Beginning July 1, 2022 and until July 1, 2023, with respect to
5food for human consumption that is to be consumed off the
6premises where it is sold (other than alcoholic beverages,
7food consisting of or infused with adult use cannabis, soft
8drinks, and food that has been prepared for immediate
9consumption), the tax is imposed at the rate of 0%.
10 Until July 1, 2023, with With respect to prescription and
11nonprescription medicines, drugs, medical appliances, products
12classified as Class III medical devices by the United States
13Food and Drug Administration that are used for cancer
14treatment pursuant to a prescription, as well as any
15accessories and components related to those devices,
16modifications to a motor vehicle for the purpose of rendering
17it usable by a person with a disability, and insulin, blood
18sugar testing materials, syringes, and needles used by human
19diabetics, the tax is imposed at the rate of 1%. For the
20purposes of this Section, until September 1, 2009: the term
21"soft drinks" means any complete, finished, ready-to-use,
22non-alcoholic drink, whether carbonated or not, including, but
23not limited to, soda water, cola, fruit juice, vegetable
24juice, carbonated water, and all other preparations commonly
25known as soft drinks of whatever kind or description that are
26contained in any closed or sealed bottle, can, carton, or

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1container, regardless of size; but "soft drinks" does not
2include coffee, tea, non-carbonated water, infant formula,
3milk or milk products as defined in the Grade A Pasteurized
4Milk and Milk Products Act, or drinks containing 50% or more
5natural fruit or vegetable juice.
6 Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "soft drinks" means non-alcoholic
8beverages that contain natural or artificial sweeteners. "Soft
9drinks" does do not include beverages that contain milk or
10milk products, soy, rice or similar milk substitutes, or
11greater than 50% of vegetable or fruit juice by volume.
12 Until August 1, 2009, and notwithstanding any other
13provisions of this Act, "food for human consumption that is to
14be consumed off the premises where it is sold" includes all
15food sold through a vending machine, except soft drinks and
16food products that are dispensed hot from a vending machine,
17regardless of the location of the vending machine. Beginning
18August 1, 2009, and notwithstanding any other provisions of
19this Act, "food for human consumption that is to be consumed
20off the premises where it is sold" includes all food sold
21through a vending machine, except soft drinks, candy, and food
22products that are dispensed hot from a vending machine,
23regardless of the location of the vending machine.
24 Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "food for human consumption that
26is to be consumed off the premises where it is sold" does not

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1include candy. For purposes of this Section, "candy" means a
2preparation of sugar, honey, or other natural or artificial
3sweeteners in combination with chocolate, fruits, nuts or
4other ingredients or flavorings in the form of bars, drops, or
5pieces. "Candy" does not include any preparation that contains
6flour or requires refrigeration.
7 Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "nonprescription medicines and
9drugs" does not include grooming and hygiene products. For
10purposes of this Section, "grooming and hygiene products"
11includes, but is not limited to, soaps and cleaning solutions,
12shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
13lotions and screens, unless those products are available by
14prescription only, regardless of whether the products meet the
15definition of "over-the-counter-drugs". For the purposes of
16this paragraph, "over-the-counter-drug" means a drug for human
17use that contains a label that identifies the product as a drug
18as required by 21 CFR C.F.R. § 201.66. The
19"over-the-counter-drug" label includes:
20 (A) a A "Drug Facts" panel; or
21 (B) a A statement of the "active ingredient(s)" with a
22 list of those ingredients contained in the compound,
23 substance or preparation.
24 Beginning on January 1, 2014 (the effective date of Public
25Act 98-122) this amendatory Act of the 98th General Assembly,
26"prescription and nonprescription medicines and drugs"

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1includes medical cannabis purchased from a registered
2dispensing organization under the Compassionate Use of Medical
3Cannabis Program Act.
4 As used in this Section, "adult use cannabis" means
5cannabis subject to tax under the Cannabis Cultivation
6Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
7and does not include cannabis subject to tax under the
8Compassionate Use of Medical Cannabis Program Act.
9(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
10102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
114-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
12102-700, Article 65, Section 65-10, eff. 4-19-22; revised
136-1-22.)
14 Section 99. Effective date. This Act takes effect upon
15becoming law.
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