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Public Act 102-1026
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SB3832 Enrolled | LRB102 23803 HLH 32994 b |
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Use Tax Act is amended by changing Section |
3-5 as follows:
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(35 ILCS 105/3-5)
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Sec. 3-5. Exemptions. Use of the following tangible |
personal property is exempt from the tax imposed by this Act:
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(1) Personal property purchased from a corporation, |
society, association,
foundation, institution, or |
organization, other than a limited liability
company, that is |
organized and operated as a not-for-profit service enterprise
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for the benefit of persons 65 years of age or older if the |
personal property was not purchased by the enterprise for the |
purpose of resale by the
enterprise.
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(2) Personal property purchased by a not-for-profit |
Illinois county
fair association for use in conducting, |
operating, or promoting the
county fair.
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(3) Personal property purchased by a not-for-profit
arts |
or cultural organization that establishes, by proof required |
by the
Department by
rule, that it has received an exemption |
under Section 501(c)(3) of the Internal
Revenue Code and that |
is organized and operated primarily for the
presentation
or |
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support of arts or cultural programming, activities, or |
services. These
organizations include, but are not limited to, |
music and dramatic arts
organizations such as symphony |
orchestras and theatrical groups, arts and
cultural service |
organizations, local arts councils, visual arts organizations,
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and media arts organizations.
On and after July 1, 2001 (the |
effective date of Public Act 92-35), however, an entity |
otherwise eligible for this exemption shall not
make tax-free |
purchases unless it has an active identification number issued |
by
the Department.
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(4) Personal property purchased by a governmental body, by |
a
corporation, society, association, foundation, or |
institution organized and
operated exclusively for charitable, |
religious, or educational purposes, or
by a not-for-profit |
corporation, society, association, foundation,
institution, or |
organization that has no compensated officers or employees
and |
that is organized and operated primarily for the recreation of |
persons
55 years of age or older. A limited liability company |
may qualify for the
exemption under this paragraph only if the |
limited liability company is
organized and operated |
exclusively for educational purposes. On and after July
1, |
1987, however, no entity otherwise eligible for this exemption |
shall make
tax-free purchases unless it has an active |
exemption identification number
issued by the Department.
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(5) Until July 1, 2003, a passenger car that is a |
replacement vehicle to
the extent that the
purchase price of |
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the car is subject to the Replacement Vehicle Tax.
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(6) Until July 1, 2003 and beginning again on September 1, |
2004 through August 30, 2014, graphic arts machinery and |
equipment, including
repair and replacement
parts, both new |
and used, and including that manufactured on special order,
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certified by the purchaser to be used primarily for graphic |
arts production,
and including machinery and equipment |
purchased for lease.
Equipment includes chemicals or chemicals |
acting as catalysts but only if
the
chemicals or chemicals |
acting as catalysts effect a direct and immediate change
upon |
a graphic arts product. Beginning on July 1, 2017, graphic |
arts machinery and equipment is included in the manufacturing |
and assembling machinery and equipment exemption under |
paragraph (18).
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(7) Farm chemicals.
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(8) Legal tender, currency, medallions, or gold or silver |
coinage issued by
the State of Illinois, the government of the |
United States of America, or the
government of any foreign |
country, and bullion.
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(9) Personal property purchased from a teacher-sponsored |
student
organization affiliated with an elementary or |
secondary school located in
Illinois.
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(10) A motor vehicle that is used for automobile renting, |
as defined in the
Automobile Renting Occupation and Use Tax |
Act.
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(11) Farm machinery and equipment, both new and used,
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including that manufactured on special order, certified by the |
purchaser
to be used primarily for production agriculture or |
State or federal
agricultural programs, including individual |
replacement parts for
the machinery and equipment, including |
machinery and equipment
purchased
for lease,
and including |
implements of husbandry defined in Section 1-130 of
the |
Illinois Vehicle Code, farm machinery and agricultural |
chemical and
fertilizer spreaders, and nurse wagons required |
to be registered
under Section 3-809 of the Illinois Vehicle |
Code,
but excluding other motor
vehicles required to be
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registered under the Illinois Vehicle Code.
Horticultural |
polyhouses or hoop houses used for propagating, growing, or
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overwintering plants shall be considered farm machinery and |
equipment under
this item (11).
Agricultural chemical tender |
tanks and dry boxes shall include units sold
separately from a |
motor vehicle required to be licensed and units sold mounted
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on a motor vehicle required to be licensed if the selling price |
of the tender
is separately stated.
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Farm machinery and equipment shall include precision |
farming equipment
that is
installed or purchased to be |
installed on farm machinery and equipment
including, but not |
limited to, tractors, harvesters, sprayers, planters,
seeders, |
or spreaders.
Precision farming equipment includes, but is not |
limited to, soil testing
sensors, computers, monitors, |
software, global positioning
and mapping systems, and other |
such equipment.
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Farm machinery and equipment also includes computers, |
sensors, software, and
related equipment used primarily in the
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computer-assisted operation of production agriculture |
facilities, equipment,
and
activities such as, but not limited |
to,
the collection, monitoring, and correlation of
animal and |
crop data for the purpose of
formulating animal diets and |
agricultural chemicals. This item (11) is exempt
from the |
provisions of
Section 3-90.
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(12) Until June 30, 2013, fuel and petroleum products sold |
to or used by an air common
carrier, certified by the carrier |
to be used for consumption, shipment, or
storage in the |
conduct of its business as an air common carrier, for a
flight |
destined for or returning from a location or locations
outside |
the United States without regard to previous or subsequent |
domestic
stopovers.
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Beginning July 1, 2013, fuel and petroleum products sold |
to or used by an air carrier, certified by the carrier to be |
used for consumption, shipment, or storage in the conduct of |
its business as an air common carrier, for a flight that (i) is |
engaged in foreign trade or is engaged in trade between the |
United States and any of its possessions and (ii) transports |
at least one individual or package for hire from the city of |
origination to the city of final destination on the same |
aircraft, without regard to a change in the flight number of |
that aircraft. |
(13) Proceeds of mandatory service charges separately
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stated on customers' bills for the purchase and consumption of |
food and
beverages purchased at retail from a retailer, to the |
extent that the proceeds
of the service charge are in fact |
turned over as tips or as a substitute
for tips to the |
employees who participate directly in preparing, serving,
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hosting or cleaning up the food or beverage function with |
respect to which
the service charge is imposed.
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(14) Until July 1, 2003, oil field exploration, drilling, |
and production
equipment,
including (i) rigs and parts of |
rigs, rotary
rigs, cable tool rigs, and workover rigs, (ii) |
pipe and tubular goods,
including casing and drill strings, |
(iii) pumps and pump-jack units, (iv)
storage tanks and flow |
lines, (v) any individual replacement part for oil
field |
exploration, drilling, and production equipment, and (vi) |
machinery and
equipment purchased
for lease; but excluding |
motor vehicles required to be registered under the
Illinois |
Vehicle Code.
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(15) Photoprocessing machinery and equipment, including |
repair and
replacement parts, both new and used, including |
that
manufactured on special order, certified by the purchaser |
to be used
primarily for photoprocessing, and including
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photoprocessing machinery and equipment purchased for lease.
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(16) Until July 1, 2023, coal and aggregate exploration, |
mining, off-highway hauling,
processing, maintenance, and |
reclamation equipment,
including replacement parts and |
equipment, and
including equipment purchased for lease, but |
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excluding motor
vehicles required to be registered under the |
Illinois Vehicle Code. The changes made to this Section by |
Public Act 97-767 apply on and after July 1, 2003, but no claim |
for credit or refund is allowed on or after August 16, 2013 |
(the effective date of Public Act 98-456)
for such taxes paid |
during the period beginning July 1, 2003 and ending on August |
16, 2013 (the effective date of Public Act 98-456).
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(17) Until July 1, 2003, distillation machinery and |
equipment, sold as a
unit or kit,
assembled or installed by the |
retailer, certified by the user to be used
only for the |
production of ethyl alcohol that will be used for consumption
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as motor fuel or as a component of motor fuel for the personal |
use of the
user, and not subject to sale or resale.
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(18) Manufacturing and assembling machinery and equipment |
used
primarily in the process of manufacturing or assembling |
tangible
personal property for wholesale or retail sale or |
lease, whether that sale
or lease is made directly by the |
manufacturer or by some other person,
whether the materials |
used in the process are
owned by the manufacturer or some other |
person, or whether that sale or
lease is made apart from or as |
an incident to the seller's engaging in
the service occupation |
of producing machines, tools, dies, jigs,
patterns, gauges, or |
other similar items of no commercial value on
special order |
for a particular purchaser. The exemption provided by this |
paragraph (18) includes production related tangible personal |
property, as defined in Section 3-50, purchased on or after |
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July 1, 2019. The exemption provided by this paragraph (18) |
does not include machinery and equipment used in (i) the |
generation of electricity for wholesale or retail sale; (ii) |
the generation or treatment of natural or artificial gas for |
wholesale or retail sale that is delivered to customers |
through pipes, pipelines, or mains; or (iii) the treatment of |
water for wholesale or retail sale that is delivered to |
customers through pipes, pipelines, or mains. The provisions |
of Public Act 98-583 are declaratory of existing law as to the |
meaning and scope of this exemption. Beginning on July 1, |
2017, the exemption provided by this paragraph (18) includes, |
but is not limited to, graphic arts machinery and equipment, |
as defined in paragraph (6) of this Section.
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(19) Personal property delivered to a purchaser or |
purchaser's donee
inside Illinois when the purchase order for |
that personal property was
received by a florist located |
outside Illinois who has a florist located
inside Illinois |
deliver the personal property.
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(20) Semen used for artificial insemination of livestock |
for direct
agricultural production.
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(21) Horses, or interests in horses, registered with and |
meeting the
requirements of any of the
Arabian Horse Club |
Registry of America, Appaloosa Horse Club, American Quarter
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Horse Association, United States
Trotting Association, or |
Jockey Club, as appropriate, used for
purposes of breeding or |
racing for prizes. This item (21) is exempt from the |
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provisions of Section 3-90, and the exemption provided for |
under this item (21) applies for all periods beginning May 30, |
1995, but no claim for credit or refund is allowed on or after |
January 1, 2008
for such taxes paid during the period |
beginning May 30, 2000 and ending on January 1, 2008.
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(22) Computers and communications equipment utilized for |
any
hospital
purpose
and equipment used in the diagnosis,
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analysis, or treatment of hospital patients purchased by a |
lessor who leases
the
equipment, under a lease of one year or |
longer executed or in effect at the
time the lessor would |
otherwise be subject to the tax imposed by this Act, to a
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hospital
that has been issued an active tax exemption |
identification number by
the
Department under Section 1g of |
the Retailers' Occupation Tax Act. If the
equipment is leased |
in a manner that does not qualify for
this exemption or is used |
in any other non-exempt manner, the lessor
shall be liable for |
the
tax imposed under this Act or the Service Use Tax Act, as |
the case may
be, based on the fair market value of the property |
at the time the
non-qualifying use occurs. No lessor shall |
collect or attempt to collect an
amount (however
designated) |
that purports to reimburse that lessor for the tax imposed by |
this
Act or the Service Use Tax Act, as the case may be, if the |
tax has not been
paid by the lessor. If a lessor improperly |
collects any such amount from the
lessee, the lessee shall |
have a legal right to claim a refund of that amount
from the |
lessor. If, however, that amount is not refunded to the lessee |
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for
any reason, the lessor is liable to pay that amount to the |
Department.
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(23) Personal property purchased by a lessor who leases |
the
property, under
a
lease of
one year or longer executed or |
in effect at the time
the lessor would otherwise be subject to |
the tax imposed by this Act,
to a governmental body
that has |
been issued an active sales tax exemption identification |
number by the
Department under Section 1g of the Retailers' |
Occupation Tax Act.
If the
property is leased in a manner that |
does not qualify for
this exemption
or used in any other |
non-exempt manner, the lessor shall be liable for the
tax |
imposed under this Act or the Service Use Tax Act, as the case |
may
be, based on the fair market value of the property at the |
time the
non-qualifying use occurs. No lessor shall collect or |
attempt to collect an
amount (however
designated) that |
purports to reimburse that lessor for the tax imposed by this
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Act or the Service Use Tax Act, as the case may be, if the tax |
has not been
paid by the lessor. If a lessor improperly |
collects any such amount from the
lessee, the lessee shall |
have a legal right to claim a refund of that amount
from the |
lessor. If, however, that amount is not refunded to the lessee |
for
any reason, the lessor is liable to pay that amount to the |
Department.
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(24) Beginning with taxable years ending on or after |
December
31, 1995
and
ending with taxable years ending on or |
before December 31, 2004,
personal property that is
donated |
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for disaster relief to be used in a State or federally declared
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disaster area in Illinois or bordering Illinois by a |
manufacturer or retailer
that is registered in this State to a |
corporation, society, association,
foundation, or institution |
that has been issued a sales tax exemption
identification |
number by the Department that assists victims of the disaster
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who reside within the declared disaster area.
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(25) Beginning with taxable years ending on or after |
December
31, 1995 and
ending with taxable years ending on or |
before December 31, 2004, personal
property that is used in |
the performance of infrastructure repairs in this
State, |
including but not limited to municipal roads and streets, |
access roads,
bridges, sidewalks, waste disposal systems, |
water and sewer line extensions,
water distribution and |
purification facilities, storm water drainage and
retention |
facilities, and sewage treatment facilities, resulting from a |
State
or federally declared disaster in Illinois or bordering |
Illinois when such
repairs are initiated on facilities located |
in the declared disaster area
within 6 months after the |
disaster.
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(26) Beginning July 1, 1999, game or game birds purchased |
at a "game
breeding
and hunting preserve area" as that term is
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used in
the Wildlife Code. This paragraph is exempt from the |
provisions
of
Section 3-90.
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(27) A motor vehicle, as that term is defined in Section |
1-146
of the
Illinois
Vehicle Code, that is donated to a |
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corporation, limited liability company,
society, association, |
foundation, or institution that is determined by the
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Department to be organized and operated exclusively for |
educational purposes.
For purposes of this exemption, "a |
corporation, limited liability company,
society, association, |
foundation, or institution organized and operated
exclusively |
for educational purposes" means all tax-supported public |
schools,
private schools that offer systematic instruction in |
useful branches of
learning by methods common to public |
schools and that compare favorably in
their scope and |
intensity with the course of study presented in tax-supported
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schools, and vocational or technical schools or institutes |
organized and
operated exclusively to provide a course of |
study of not less than 6 weeks
duration and designed to prepare |
individuals to follow a trade or to pursue a
manual, |
technical, mechanical, industrial, business, or commercial
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occupation.
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(28) Beginning January 1, 2000, personal property, |
including
food,
purchased through fundraising
events for the |
benefit of
a public or private elementary or
secondary school, |
a group of those schools, or one or more school
districts if |
the events are
sponsored by an entity recognized by the school |
district that consists
primarily of volunteers and includes
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parents and teachers of the school children. This paragraph |
does not apply
to fundraising
events (i) for the benefit of |
private home instruction or (ii)
for which the fundraising |
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entity purchases the personal property sold at
the events from |
another individual or entity that sold the property for the
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purpose of resale by the fundraising entity and that
profits |
from the sale to the
fundraising entity. This paragraph is |
exempt
from the provisions
of Section 3-90.
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(29) Beginning January 1, 2000 and through December 31, |
2001, new or
used automatic vending
machines that prepare and |
serve hot food and beverages, including coffee, soup,
and
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other items, and replacement parts for these machines.
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Beginning January 1,
2002 and through June 30, 2003, machines |
and parts for machines used in
commercial, coin-operated |
amusement and vending business if a use or occupation
tax is |
paid on the gross receipts derived from the use of the |
commercial,
coin-operated amusement and vending machines.
This
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paragraph
is exempt from the provisions of Section 3-90.
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(30) Beginning January 1, 2001 and through June 30, 2016, |
food for human consumption that is to be consumed off the |
premises
where it is sold (other than alcoholic beverages, |
soft drinks, and food that
has been prepared for immediate |
consumption) and prescription and
nonprescription medicines, |
drugs, medical appliances, and insulin, urine
testing |
materials, syringes, and needles used by diabetics, for human |
use, when
purchased for use by a person receiving medical |
assistance under Article V of
the Illinois Public Aid Code who |
resides in a licensed long-term care facility,
as defined in |
the Nursing Home Care Act, or in a licensed facility as defined |
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in the ID/DD Community Care Act, the MC/DD Act, or the |
Specialized Mental Health Rehabilitation Act of 2013.
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(31) Beginning on August 2, 2001 (the effective date of |
Public Act 92-227),
computers and communications equipment
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utilized for any hospital purpose and equipment used in the |
diagnosis,
analysis, or treatment of hospital patients |
purchased by a lessor who leases
the equipment, under a lease |
of one year or longer executed or in effect at the
time the |
lessor would otherwise be subject to the tax imposed by this |
Act, to a
hospital that has been issued an active tax exemption |
identification number by
the Department under Section 1g of |
the Retailers' Occupation Tax Act. If the
equipment is leased |
in a manner that does not qualify for this exemption or is
used |
in any other nonexempt manner, the lessor shall be liable for |
the tax
imposed under this Act or the Service Use Tax Act, as |
the case may be, based on
the fair market value of the property |
at the time the nonqualifying use
occurs. No lessor shall |
collect or attempt to collect an amount (however
designated) |
that purports to reimburse that lessor for the tax imposed by |
this
Act or the Service Use Tax Act, as the case may be, if the |
tax has not been
paid by the lessor. If a lessor improperly |
collects any such amount from the
lessee, the lessee shall |
have a legal right to claim a refund of that amount
from the |
lessor. If, however, that amount is not refunded to the lessee |
for
any reason, the lessor is liable to pay that amount to the |
Department.
This paragraph is exempt from the provisions of |
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Section 3-90.
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(32) Beginning on August 2, 2001 (the effective date of |
Public Act 92-227),
personal property purchased by a lessor |
who leases the property,
under a lease of one year or longer |
executed or in effect at the time the
lessor would otherwise be |
subject to the tax imposed by this Act, to a
governmental body |
that has been issued an active sales tax exemption
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identification number by the Department under Section 1g of |
the Retailers'
Occupation Tax Act. If the property is leased |
in a manner that does not
qualify for this exemption or used in |
any other nonexempt manner, the lessor
shall be liable for the |
tax imposed under this Act or the Service Use Tax Act,
as the |
case may be, based on the fair market value of the property at |
the time
the nonqualifying use occurs. No lessor shall collect |
or attempt to collect
an amount (however designated) that |
purports to reimburse that lessor for the
tax imposed by this |
Act or the Service Use Tax Act, as the case may be, if the
tax |
has not been paid by the lessor. If a lessor improperly |
collects any such
amount from the lessee, the lessee shall |
have a legal right to claim a refund
of that amount from the |
lessor. If, however, that amount is not refunded to
the lessee |
for any reason, the lessor is liable to pay that amount to the
|
Department. This paragraph is exempt from the provisions of |
Section 3-90.
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(33) On and after July 1, 2003 and through June 30, 2004, |
the use in this State of motor vehicles of
the second division |
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with a gross vehicle weight in excess of 8,000 pounds and
that |
are subject to the commercial distribution fee imposed under |
Section
3-815.1 of the Illinois Vehicle Code. Beginning on |
July 1, 2004 and through June 30, 2005, the use in this State |
of motor vehicles of the second division: (i) with a gross |
vehicle weight rating in excess of 8,000 pounds; (ii) that are |
subject to the commercial distribution fee imposed under |
Section 3-815.1 of the Illinois Vehicle Code; and (iii) that |
are primarily used for commercial purposes. Through June 30, |
2005, this exemption applies to repair and
replacement parts |
added after the initial purchase of such a motor vehicle if
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that motor
vehicle is used in a manner that would qualify for |
the rolling stock exemption
otherwise provided for in this |
Act. For purposes of this paragraph, the term "used for |
commercial purposes" means the transportation of persons or |
property in furtherance of any commercial or industrial |
enterprise, whether for-hire or not.
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(34) Beginning January 1, 2008, tangible personal property |
used in the construction or maintenance of a community water |
supply, as defined under Section 3.145 of the Environmental |
Protection Act, that is operated by a not-for-profit |
corporation that holds a valid water supply permit issued |
under Title IV of the Environmental Protection Act. This |
paragraph is exempt from the provisions of Section 3-90. |
(35) Beginning January 1, 2010 and continuing through |
December 31, 2024, materials, parts, equipment, components, |
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and furnishings incorporated into or upon an aircraft as part |
of the modification, refurbishment, completion, replacement, |
repair, or maintenance of the aircraft. This exemption |
includes consumable supplies used in the modification, |
refurbishment, completion, replacement, repair, and |
maintenance of aircraft, but excludes any materials, parts, |
equipment, components, and consumable supplies used in the |
modification, replacement, repair, and maintenance of aircraft |
engines or power plants, whether such engines or power plants |
are installed or uninstalled upon any such aircraft. |
"Consumable supplies" include, but are not limited to, |
adhesive, tape, sandpaper, general purpose lubricants, |
cleaning solution, latex gloves, and protective films. This |
exemption applies only to the use of qualifying tangible |
personal property by persons who modify, refurbish, complete, |
repair, replace, or maintain aircraft and who (i) hold an Air |
Agency Certificate and are empowered to operate an approved |
repair station by the Federal Aviation Administration, (ii) |
have a Class IV Rating, and (iii) conduct operations in |
accordance with Part 145 of the Federal Aviation Regulations. |
The exemption does not include aircraft operated by a |
commercial air carrier providing scheduled passenger air |
service pursuant to authority issued under Part 121 or Part |
129 of the Federal Aviation Regulations. The changes made to |
this paragraph (35) by Public Act 98-534 are declarative of |
existing law. It is the intent of the General Assembly that the |
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exemption under this paragraph (35) applies continuously from |
January 1, 2010 through December 31, 2024; however, no claim |
for credit or refund is allowed for taxes paid as a result of |
the disallowance of this exemption on or after January 1, 2015 |
and prior to the effective date of this amendatory Act of the |
101st General Assembly. |
(36) Tangible personal property purchased by a |
public-facilities corporation, as described in Section |
11-65-10 of the Illinois Municipal Code, for purposes of |
constructing or furnishing a municipal convention hall, but |
only if the legal title to the municipal convention hall is |
transferred to the municipality without any further |
consideration by or on behalf of the municipality at the time |
of the completion of the municipal convention hall or upon the |
retirement or redemption of any bonds or other debt |
instruments issued by the public-facilities corporation in |
connection with the development of the municipal convention |
hall. This exemption includes existing public-facilities |
corporations as provided in Section 11-65-25 of the Illinois |
Municipal Code. This paragraph is exempt from the provisions |
of Section 3-90. |
(37) Beginning January 1, 2017 and through December 31, |
2026, menstrual pads, tampons, and menstrual cups. |
(38) Merchandise that is subject to the Rental Purchase |
Agreement Occupation and Use Tax. The purchaser must certify |
that the item is purchased to be rented subject to a rental |
|
purchase agreement, as defined in the Rental Purchase |
Agreement Act, and provide proof of registration under the |
Rental Purchase Agreement Occupation and Use Tax Act. This |
paragraph is exempt from the provisions of Section 3-90. |
(39) Tangible personal property purchased by a purchaser |
who is exempt from the tax imposed by this Act by operation of |
federal law. This paragraph is exempt from the provisions of |
Section 3-90. |
(40) Qualified tangible personal property used in the |
construction or operation of a data center that has been |
granted a certificate of exemption by the Department of |
Commerce and Economic Opportunity, whether that tangible |
personal property is purchased by the owner, operator, or |
tenant of the data center or by a contractor or subcontractor |
of the owner, operator, or tenant. Data centers that would |
have qualified for a certificate of exemption prior to January |
1, 2020 had Public Act 101-31 been in effect may apply for and |
obtain an exemption for subsequent purchases of computer |
equipment or enabling software purchased or leased to upgrade, |
supplement, or replace computer equipment or enabling software |
purchased or leased in the original investment that would have |
qualified. |
The Department of Commerce and Economic Opportunity shall |
grant a certificate of exemption under this item (40) to |
qualified data centers as defined by Section 605-1025 of the |
Department of Commerce and Economic Opportunity Law of the
|
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Civil Administrative Code of Illinois. |
For the purposes of this item (40): |
"Data center" means a building or a series of |
buildings rehabilitated or constructed to house working |
servers in one physical location or multiple sites within |
the State of Illinois. |
"Qualified tangible personal property" means: |
electrical systems and equipment; climate control and |
chilling equipment and systems; mechanical systems and |
equipment; monitoring and secure systems; emergency |
generators; hardware; computers; servers; data storage |
devices; network connectivity equipment; racks; cabinets; |
telecommunications cabling infrastructure; raised floor |
systems; peripheral components or systems; software; |
mechanical, electrical, or plumbing systems; battery |
systems; cooling systems and towers; temperature control |
systems; other cabling; and other data center |
infrastructure equipment and systems necessary to operate |
qualified tangible personal property, including fixtures; |
and component parts of any of the foregoing, including |
installation, maintenance, repair, refurbishment, and |
replacement of qualified tangible personal property to |
generate, transform, transmit, distribute, or manage |
electricity necessary to operate qualified tangible |
personal property; and all other tangible personal |
property that is essential to the operations of a computer |
|
data center. The term "qualified tangible personal |
property" also includes building materials physically |
incorporated in to the qualifying data center. To document |
the exemption allowed under this Section, the retailer |
must obtain from the purchaser a copy of the certificate |
of eligibility issued by the Department of Commerce and |
Economic Opportunity. |
This item (40) is exempt from the provisions of Section |
3-90. |
(41) Tangible personal property sold by or on behalf of |
the State Treasurer pursuant to the Revised Uniform Unclaimed |
Property Act. This item (41) is exempt from the provisions of |
Section 3-90. |
(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; |
101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff. |
6-17-21.)
|
Section 10. The Service Use Tax Act is amended by changing |
Section 3-5 as follows:
|
(35 ILCS 110/3-5)
|
Sec. 3-5. Exemptions. Use of the following tangible |
personal property
is exempt from the tax imposed by this Act:
|
(1) Personal property purchased from a corporation, |
society,
association, foundation, institution, or |
organization, other than a limited
liability company, that is |
|
organized and operated as a not-for-profit service
enterprise |
for the benefit of persons 65 years of age or older if the |
personal
property was not purchased by the enterprise for the |
purpose of resale by the
enterprise.
|
(2) Personal property purchased by a non-profit Illinois |
county fair
association for use in conducting, operating, or |
promoting the county fair.
|
(3) Personal property purchased by a not-for-profit arts
|
or cultural
organization that establishes, by proof required |
by the Department by rule,
that it has received an exemption |
under Section 501(c)(3) of the Internal
Revenue Code and that |
is organized and operated primarily for the
presentation
or |
support of arts or cultural programming, activities, or |
services. These
organizations include, but are not limited to, |
music and dramatic arts
organizations such as symphony |
orchestras and theatrical groups, arts and
cultural service |
organizations, local arts councils, visual arts organizations,
|
and media arts organizations.
On and after July 1, 2001 (the |
effective date of Public Act 92-35), however, an entity |
otherwise eligible for this exemption shall not
make tax-free |
purchases unless it has an active identification number issued |
by
the Department.
|
(4) Legal tender, currency, medallions, or gold or silver |
coinage issued
by the State of Illinois, the government of the |
United States of America,
or the government of any foreign |
country, and bullion.
|
|
(5) Until July 1, 2003 and beginning again on September 1, |
2004 through August 30, 2014, graphic arts machinery and |
equipment, including
repair and
replacement parts, both new |
and used, and including that manufactured on
special order or |
purchased for lease, certified by the purchaser to be used
|
primarily for graphic arts production.
Equipment includes |
chemicals or
chemicals acting as catalysts but only if
the |
chemicals or chemicals acting as catalysts effect a direct and |
immediate
change upon a graphic arts product. Beginning on |
July 1, 2017, graphic arts machinery and equipment is included |
in the manufacturing and assembling machinery and equipment |
exemption under Section 2 of this Act.
|
(6) Personal property purchased from a teacher-sponsored |
student
organization affiliated with an elementary or |
secondary school located
in Illinois.
|
(7) Farm machinery and equipment, both new and used, |
including that
manufactured on special order, certified by the |
purchaser to be used
primarily for production agriculture or |
State or federal agricultural
programs, including individual |
replacement parts for the machinery and
equipment, including |
machinery and equipment purchased for lease,
and including |
implements of husbandry defined in Section 1-130 of
the |
Illinois Vehicle Code, farm machinery and agricultural |
chemical and
fertilizer spreaders, and nurse wagons required |
to be registered
under Section 3-809 of the Illinois Vehicle |
Code,
but
excluding other motor vehicles required to be |
|
registered under the Illinois
Vehicle Code.
Horticultural |
polyhouses or hoop houses used for propagating, growing, or
|
overwintering plants shall be considered farm machinery and |
equipment under
this item (7).
Agricultural chemical tender |
tanks and dry boxes shall include units sold
separately from a |
motor vehicle required to be licensed and units sold mounted
|
on a motor vehicle required to be licensed if the selling price |
of the tender
is separately stated.
|
Farm machinery and equipment shall include precision |
farming equipment
that is
installed or purchased to be |
installed on farm machinery and equipment
including, but not |
limited to, tractors, harvesters, sprayers, planters,
seeders, |
or spreaders.
Precision farming equipment includes, but is not |
limited to,
soil testing sensors, computers, monitors, |
software, global positioning
and mapping systems, and other |
such equipment.
|
Farm machinery and equipment also includes computers, |
sensors, software, and
related equipment used primarily in the
|
computer-assisted operation of production agriculture |
facilities, equipment,
and activities such as, but
not limited |
to,
the collection, monitoring, and correlation of
animal and |
crop data for the purpose of
formulating animal diets and |
agricultural chemicals. This item (7) is exempt
from the |
provisions of
Section 3-75.
|
(8) Until June 30, 2013, fuel and petroleum products sold |
to or used by an air common
carrier, certified by the carrier |
|
to be used for consumption, shipment, or
storage in the |
conduct of its business as an air common carrier, for a
flight |
destined for or returning from a location or locations
outside |
the United States without regard to previous or subsequent |
domestic
stopovers.
|
Beginning July 1, 2013, fuel and petroleum products sold |
to or used by an air carrier, certified by the carrier to be |
used for consumption, shipment, or storage in the conduct of |
its business as an air common carrier, for a flight that (i) is |
engaged in foreign trade or is engaged in trade between the |
United States and any of its possessions and (ii) transports |
at least one individual or package for hire from the city of |
origination to the city of final destination on the same |
aircraft, without regard to a change in the flight number of |
that aircraft. |
(9) Proceeds of mandatory service charges separately |
stated on
customers' bills for the purchase and consumption of |
food and beverages
acquired as an incident to the purchase of a |
service from a serviceman, to
the extent that the proceeds of |
the service charge are in fact
turned over as tips or as a |
substitute for tips to the employees who
participate directly |
in preparing, serving, hosting or cleaning up the
food or |
beverage function with respect to which the service charge is |
imposed.
|
(10) Until July 1, 2003, oil field exploration, drilling, |
and production
equipment, including
(i) rigs and parts of |
|
rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) |
pipe and tubular goods, including casing and
drill strings, |
(iii) pumps and pump-jack units, (iv) storage tanks and flow
|
lines, (v) any individual replacement part for oil field |
exploration,
drilling, and production equipment, and (vi) |
machinery and equipment purchased
for lease; but
excluding |
motor vehicles required to be registered under the Illinois
|
Vehicle Code.
|
(11) Proceeds from the sale of photoprocessing machinery |
and
equipment, including repair and replacement parts, both |
new and
used, including that manufactured on special order, |
certified by the
purchaser to be used primarily for |
photoprocessing, and including
photoprocessing machinery and |
equipment purchased for lease.
|
(12) Until July 1, 2023, coal and aggregate exploration, |
mining, off-highway hauling,
processing,
maintenance, and |
reclamation equipment, including
replacement parts and |
equipment, and including
equipment purchased for lease, but |
excluding motor vehicles required to be
registered under the |
Illinois Vehicle Code. The changes made to this Section by |
Public Act 97-767 apply on and after July 1, 2003, but no claim |
for credit or refund is allowed on or after August 16, 2013 |
(the effective date of Public Act 98-456)
for such taxes paid |
during the period beginning July 1, 2003 and ending on August |
16, 2013 (the effective date of Public Act 98-456).
|
(13) Semen used for artificial insemination of livestock |
|
for direct
agricultural production.
|
(14) Horses, or interests in horses, registered with and |
meeting the
requirements of any of the
Arabian Horse Club |
Registry of America, Appaloosa Horse Club, American Quarter
|
Horse Association, United States
Trotting Association, or |
Jockey Club, as appropriate, used for
purposes of breeding or |
racing for prizes. This item (14) is exempt from the |
provisions of Section 3-75, and the exemption provided for |
under this item (14) applies for all periods beginning May 30, |
1995, but no claim for credit or refund is allowed on or after |
January 1, 2008 (the effective date of Public Act 95-88) for |
such taxes paid during the period beginning May 30, 2000 and |
ending on January 1, 2008 (the effective date of Public Act |
95-88).
|
(15) Computers and communications equipment utilized for |
any
hospital
purpose
and equipment used in the diagnosis,
|
analysis, or treatment of hospital patients purchased by a |
lessor who leases
the
equipment, under a lease of one year or |
longer executed or in effect at the
time
the lessor would |
otherwise be subject to the tax imposed by this Act,
to a
|
hospital
that has been issued an active tax exemption |
identification number by the
Department under Section 1g of |
the Retailers' Occupation Tax Act.
If the
equipment is leased |
in a manner that does not qualify for
this exemption
or is used |
in any other non-exempt manner,
the lessor shall be liable for |
the
tax imposed under this Act or the Use Tax Act, as the case |
|
may
be, based on the fair market value of the property at the |
time the
non-qualifying use occurs. No lessor shall collect or |
attempt to collect an
amount (however
designated) that |
purports to reimburse that lessor for the tax imposed by this
|
Act or the Use Tax Act, as the case may be, if the tax has not |
been
paid by the lessor. If a lessor improperly collects any |
such amount from the
lessee, the lessee shall have a legal |
right to claim a refund of that amount
from the lessor. If, |
however, that amount is not refunded to the lessee for
any |
reason, the lessor is liable to pay that amount to the |
Department.
|
(16) Personal property purchased by a lessor who leases |
the
property, under
a
lease of one year or longer executed or |
in effect at the time
the lessor would otherwise be subject to |
the tax imposed by this Act,
to a governmental body
that has |
been issued an active tax exemption identification number by |
the
Department under Section 1g of the Retailers' Occupation |
Tax Act.
If the
property is leased in a manner that does not |
qualify for
this exemption
or is used in any other non-exempt |
manner,
the lessor shall be liable for the
tax imposed under |
this Act or the Use Tax Act, as the case may
be, based on the |
fair market value of the property at the time the
|
non-qualifying use occurs. No lessor shall collect or attempt |
to collect an
amount (however
designated) that purports to |
reimburse that lessor for the tax imposed by this
Act or the |
Use Tax Act, as the case may be, if the tax has not been
paid |
|
by the lessor. If a lessor improperly collects any such amount |
from the
lessee, the lessee shall have a legal right to claim a |
refund of that amount
from the lessor. If, however, that |
amount is not refunded to the lessee for
any reason, the lessor |
is liable to pay that amount to the Department.
|
(17) Beginning with taxable years ending on or after |
December
31,
1995
and
ending with taxable years ending on or |
before December 31, 2004,
personal property that is
donated |
for disaster relief to be used in a State or federally declared
|
disaster area in Illinois or bordering Illinois by a |
manufacturer or retailer
that is registered in this State to a |
corporation, society, association,
foundation, or institution |
that has been issued a sales tax exemption
identification |
number by the Department that assists victims of the disaster
|
who reside within the declared disaster area.
|
(18) Beginning with taxable years ending on or after |
December
31, 1995 and
ending with taxable years ending on or |
before December 31, 2004, personal
property that is used in |
the performance of infrastructure repairs in this
State, |
including but not limited to municipal roads and streets, |
access roads,
bridges, sidewalks, waste disposal systems, |
water and sewer line extensions,
water distribution and |
purification facilities, storm water drainage and
retention |
facilities, and sewage treatment facilities, resulting from a |
State
or federally declared disaster in Illinois or bordering |
Illinois when such
repairs are initiated on facilities located |
|
in the declared disaster area
within 6 months after the |
disaster.
|
(19) Beginning July 1, 1999, game or game birds purchased |
at a "game
breeding
and hunting preserve area" as that term is
|
used in
the Wildlife Code. This paragraph is exempt from the |
provisions
of
Section 3-75.
|
(20) A motor vehicle, as that term is defined in Section |
1-146
of the
Illinois Vehicle Code, that is donated to a |
corporation, limited liability
company, society, association, |
foundation, or institution that is determined by
the |
Department to be organized and operated exclusively for |
educational
purposes. For purposes of this exemption, "a |
corporation, limited liability
company, society, association, |
foundation, or institution organized and
operated
exclusively |
for educational purposes" means all tax-supported public |
schools,
private schools that offer systematic instruction in |
useful branches of
learning by methods common to public |
schools and that compare favorably in
their scope and |
intensity with the course of study presented in tax-supported
|
schools, and vocational or technical schools or institutes |
organized and
operated exclusively to provide a course of |
study of not less than 6 weeks
duration and designed to prepare |
individuals to follow a trade or to pursue a
manual, |
technical, mechanical, industrial, business, or commercial
|
occupation.
|
(21) Beginning January 1, 2000, personal property, |
|
including
food,
purchased through fundraising
events for the |
benefit of
a public or private elementary or
secondary school, |
a group of those schools, or one or more school
districts if |
the events are
sponsored by an entity recognized by the school |
district that consists
primarily of volunteers and includes
|
parents and teachers of the school children. This paragraph |
does not apply
to fundraising
events (i) for the benefit of |
private home instruction or (ii)
for which the fundraising |
entity purchases the personal property sold at
the events from |
another individual or entity that sold the property for the
|
purpose of resale by the fundraising entity and that
profits |
from the sale to the
fundraising entity. This paragraph is |
exempt
from the provisions
of Section 3-75.
|
(22) Beginning January 1, 2000
and through December 31, |
2001, new or used automatic vending
machines that prepare and |
serve hot food and beverages, including coffee, soup,
and
|
other items, and replacement parts for these machines.
|
Beginning January 1,
2002 and through June 30, 2003, machines |
and parts for machines used in
commercial, coin-operated
|
amusement
and vending business if a use or occupation tax is |
paid on the gross receipts
derived from
the use of the |
commercial, coin-operated amusement and vending machines.
This
|
paragraph
is exempt from the provisions of Section 3-75.
|
(23) Beginning August 23, 2001 and through June 30, 2016, |
food for human consumption that is to be consumed off the
|
premises
where it is sold (other than alcoholic beverages, |
|
soft drinks, and food that
has been prepared for immediate |
consumption) and prescription and
nonprescription medicines, |
drugs, medical appliances, and insulin, urine
testing |
materials, syringes, and needles used by diabetics, for human |
use, when
purchased for use by a person receiving medical |
assistance under Article V of
the Illinois Public Aid Code who |
resides in a licensed long-term care facility,
as defined in |
the Nursing Home Care Act, or in a licensed facility as defined |
in the ID/DD Community Care Act, the MC/DD Act, or the |
Specialized Mental Health Rehabilitation Act of 2013.
|
(24) Beginning on August 2, 2001 (the effective date of |
Public Act 92-227), computers and communications equipment
|
utilized for any hospital purpose and equipment used in the |
diagnosis,
analysis, or treatment of hospital patients |
purchased by a lessor who leases
the equipment, under a lease |
of one year or longer executed or in effect at the
time the |
lessor would otherwise be subject to the tax imposed by this |
Act, to a
hospital that has been issued an active tax exemption |
identification number by
the Department under Section 1g of |
the Retailers' Occupation Tax Act. If the
equipment is leased |
in a manner that does not qualify for this exemption or is
used |
in any other nonexempt manner, the lessor shall be liable for |
the
tax imposed under this Act or the Use Tax Act, as the case |
may be, based on the
fair market value of the property at the |
time the nonqualifying use occurs.
No lessor shall collect or |
attempt to collect an amount (however
designated) that |
|
purports to reimburse that lessor for the tax imposed by this
|
Act or the Use Tax Act, as the case may be, if the tax has not |
been
paid by the lessor. If a lessor improperly collects any |
such amount from the
lessee, the lessee shall have a legal |
right to claim a refund of that amount
from the lessor. If, |
however, that amount is not refunded to the lessee for
any |
reason, the lessor is liable to pay that amount to the |
Department.
This paragraph is exempt from the provisions of |
Section 3-75.
|
(25) Beginning
on August 2, 2001 (the effective date of |
Public Act 92-227),
personal property purchased by a lessor
|
who leases the property, under a lease of one year or longer |
executed or in
effect at the time the lessor would otherwise be |
subject to the tax imposed by
this Act, to a governmental body |
that has been issued an active tax exemption
identification |
number by the Department under Section 1g of the Retailers'
|
Occupation Tax Act. If the property is leased in a manner that |
does not
qualify for this exemption or is used in any other |
nonexempt manner, the
lessor shall be liable for the tax |
imposed under this Act or the Use Tax Act,
as the case may be, |
based on the fair market value of the property at the time
the |
nonqualifying use occurs. No lessor shall collect or attempt |
to collect
an amount (however designated) that purports to |
reimburse that lessor for the
tax imposed by this Act or the |
Use Tax Act, as the case may be, if the tax has
not been paid |
by the lessor. If a lessor improperly collects any such amount
|
|
from the lessee, the lessee shall have a legal right to claim a |
refund of that
amount from the lessor. If, however, that |
amount is not refunded to the lessee
for any reason, the lessor |
is liable to pay that amount to the Department.
This paragraph |
is exempt from the provisions of Section 3-75.
|
(26) Beginning January 1, 2008, tangible personal property |
used in the construction or maintenance of a community water |
supply, as defined under Section 3.145 of the Environmental |
Protection Act, that is operated by a not-for-profit |
corporation that holds a valid water supply permit issued |
under Title IV of the Environmental Protection Act. This |
paragraph is exempt from the provisions of Section 3-75.
|
(27) Beginning January 1, 2010 and continuing through |
December 31, 2024, materials, parts, equipment, components, |
and furnishings incorporated into or upon an aircraft as part |
of the modification, refurbishment, completion, replacement, |
repair, or maintenance of the aircraft. This exemption |
includes consumable supplies used in the modification, |
refurbishment, completion, replacement, repair, and |
maintenance of aircraft, but excludes any materials, parts, |
equipment, components, and consumable supplies used in the |
modification, replacement, repair, and maintenance of aircraft |
engines or power plants, whether such engines or power plants |
are installed or uninstalled upon any such aircraft. |
"Consumable supplies" include, but are not limited to, |
adhesive, tape, sandpaper, general purpose lubricants, |
|
cleaning solution, latex gloves, and protective films. This |
exemption applies only to the use of qualifying tangible |
personal property transferred incident to the modification, |
refurbishment, completion, replacement, repair, or maintenance |
of aircraft by persons who (i) hold an Air Agency Certificate |
and are empowered to operate an approved repair station by the |
Federal Aviation Administration, (ii) have a Class IV Rating, |
and (iii) conduct operations in accordance with Part 145 of |
the Federal Aviation Regulations. The exemption does not |
include aircraft operated by a commercial air carrier |
providing scheduled passenger air service pursuant to |
authority issued under Part 121 or Part 129 of the Federal |
Aviation Regulations. The changes made to this paragraph (27) |
by Public Act 98-534 are declarative of existing law. It is the |
intent of the General Assembly that the exemption under this |
paragraph (27) applies continuously from January 1, 2010 |
through December 31, 2024; however, no claim for credit or |
refund is allowed for taxes paid as a result of the |
disallowance of this exemption on or after January 1, 2015 and |
prior to the effective date of this amendatory Act of the 101st |
General Assembly. |
(28) Tangible personal property purchased by a |
public-facilities corporation, as described in Section |
11-65-10 of the Illinois Municipal Code, for purposes of |
constructing or furnishing a municipal convention hall, but |
only if the legal title to the municipal convention hall is |
|
transferred to the municipality without any further |
consideration by or on behalf of the municipality at the time |
of the completion of the municipal convention hall or upon the |
retirement or redemption of any bonds or other debt |
instruments issued by the public-facilities corporation in |
connection with the development of the municipal convention |
hall. This exemption includes existing public-facilities |
corporations as provided in Section 11-65-25 of the Illinois |
Municipal Code. This paragraph is exempt from the provisions |
of Section 3-75. |
(29) Beginning January 1, 2017 and through December 31, |
2026, menstrual pads, tampons, and menstrual cups. |
(30) Tangible personal property transferred to a purchaser |
who is exempt from the tax imposed by this Act by operation of |
federal law. This paragraph is exempt from the provisions of |
Section 3-75. |
(31) Qualified tangible personal property used in the |
construction or operation of a data center that has been |
granted a certificate of exemption by the Department of |
Commerce and Economic Opportunity, whether that tangible |
personal property is purchased by the owner, operator, or |
tenant of the data center or by a contractor or subcontractor |
of the owner, operator, or tenant. Data centers that would |
have qualified for a certificate of exemption prior to January |
1, 2020 had this amendatory Act of the 101st General Assembly |
been in effect, may apply for and obtain an exemption for |
|
subsequent purchases of computer equipment or enabling |
software purchased or leased to upgrade, supplement, or |
replace computer equipment or enabling software purchased or |
leased in the original investment that would have qualified. |
The Department of Commerce and Economic Opportunity shall |
grant a certificate of exemption under this item (31) to |
qualified data centers as defined by Section 605-1025 of the |
Department of Commerce and Economic Opportunity Law of the
|
Civil Administrative Code of Illinois. |
For the purposes of this item (31): |
"Data center" means a building or a series of |
buildings rehabilitated or constructed to house working |
servers in one physical location or multiple sites within |
the State of Illinois. |
"Qualified tangible personal property" means: |
electrical systems and equipment; climate control and |
chilling equipment and systems; mechanical systems and |
equipment; monitoring and secure systems; emergency |
generators; hardware; computers; servers; data storage |
devices; network connectivity equipment; racks; cabinets; |
telecommunications cabling infrastructure; raised floor |
systems; peripheral components or systems; software; |
mechanical, electrical, or plumbing systems; battery |
systems; cooling systems and towers; temperature control |
systems; other cabling; and other data center |
infrastructure equipment and systems necessary to operate |
|
qualified tangible personal property, including fixtures; |
and component parts of any of the foregoing, including |
installation, maintenance, repair, refurbishment, and |
replacement of qualified tangible personal property to |
generate, transform, transmit, distribute, or manage |
electricity necessary to operate qualified tangible |
personal property; and all other tangible personal |
property that is essential to the operations of a computer |
data center. The term "qualified tangible personal |
property" also includes building materials physically |
incorporated in to the qualifying data center. To document |
the exemption allowed under this Section, the retailer |
must obtain from the purchaser a copy of the certificate |
of eligibility issued by the Department of Commerce and |
Economic Opportunity. |
This item (31) is exempt from the provisions of Section |
3-75. |
(32) Tangible personal property sold by or on behalf of |
the State Treasurer pursuant to the Revised Uniform Unclaimed |
Property Act. This item (32) is exempt from the provisions of |
Section 3-75. |
(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; |
101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
|
Section 15. The Service Occupation Tax Act is amended by |
changing Section 3-5 as follows:
|
|
(35 ILCS 115/3-5)
|
Sec. 3-5. Exemptions. The following tangible personal |
property is
exempt from the tax imposed by this Act:
|
(1) Personal property sold by a corporation, society, |
association,
foundation, institution, or organization, other |
than a limited liability
company, that is organized and |
operated as a not-for-profit service enterprise
for the |
benefit of persons 65 years of age or older if the personal |
property
was not purchased by the enterprise for the purpose |
of resale by the
enterprise.
|
(2) Personal property purchased by a not-for-profit |
Illinois county fair
association for use in conducting, |
operating, or promoting the county fair.
|
(3) Personal property purchased by any not-for-profit
arts |
or cultural organization that establishes, by proof required |
by the
Department by
rule, that it has received an exemption |
under Section 501(c)(3) of the
Internal Revenue Code and that |
is organized and operated primarily for the
presentation
or |
support of arts or cultural programming, activities, or |
services. These
organizations include, but are not limited to, |
music and dramatic arts
organizations such as symphony |
orchestras and theatrical groups, arts and
cultural service |
organizations, local arts councils, visual arts organizations,
|
and media arts organizations.
On and after July 1, 2001 (the |
effective date of Public Act 92-35), however, an entity |
|
otherwise eligible for this exemption shall not
make tax-free |
purchases unless it has an active identification number issued |
by
the Department.
|
(4) Legal tender, currency, medallions, or gold or silver |
coinage
issued by the State of Illinois, the government of the |
United States of
America, or the government of any foreign |
country, and bullion.
|
(5) Until July 1, 2003 and beginning again on September 1, |
2004 through August 30, 2014, graphic arts machinery and |
equipment, including
repair and
replacement parts, both new |
and used, and including that manufactured on
special order or |
purchased for lease, certified by the purchaser to be used
|
primarily for graphic arts production.
Equipment includes |
chemicals or chemicals acting as catalysts but only if
the
|
chemicals or chemicals acting as catalysts effect a direct and |
immediate change
upon a graphic arts product. Beginning on |
July 1, 2017, graphic arts machinery and equipment is included |
in the manufacturing and assembling machinery and equipment |
exemption under Section 2 of this Act.
|
(6) Personal property sold by a teacher-sponsored student |
organization
affiliated with an elementary or secondary school |
located in Illinois.
|
(7) Farm machinery and equipment, both new and used, |
including that
manufactured on special order, certified by the |
purchaser to be used
primarily for production agriculture or |
State or federal agricultural
programs, including individual |
|
replacement parts for the machinery and
equipment, including |
machinery and equipment purchased for lease,
and including |
implements of husbandry defined in Section 1-130 of
the |
Illinois Vehicle Code, farm machinery and agricultural |
chemical and
fertilizer spreaders, and nurse wagons required |
to be registered
under Section 3-809 of the Illinois Vehicle |
Code,
but
excluding other motor vehicles required to be |
registered under the Illinois
Vehicle
Code.
Horticultural |
polyhouses or hoop houses used for propagating, growing, or
|
overwintering plants shall be considered farm machinery and |
equipment under
this item (7).
Agricultural chemical tender |
tanks and dry boxes shall include units sold
separately from a |
motor vehicle required to be licensed and units sold mounted
|
on a motor vehicle required to be licensed if the selling price |
of the tender
is separately stated.
|
Farm machinery and equipment shall include precision |
farming equipment
that is
installed or purchased to be |
installed on farm machinery and equipment
including, but not |
limited to, tractors, harvesters, sprayers, planters,
seeders, |
or spreaders.
Precision farming equipment includes, but is not |
limited to,
soil testing sensors, computers, monitors, |
software, global positioning
and mapping systems, and other |
such equipment.
|
Farm machinery and equipment also includes computers, |
sensors, software, and
related equipment used primarily in the
|
computer-assisted operation of production agriculture |
|
facilities, equipment,
and activities such as, but
not limited |
to,
the collection, monitoring, and correlation of
animal and |
crop data for the purpose of
formulating animal diets and |
agricultural chemicals. This item (7) is exempt
from the |
provisions of
Section 3-55.
|
(8) Until June 30, 2013, fuel and petroleum products sold |
to or used by an air common
carrier, certified by the carrier |
to be used for consumption, shipment,
or storage in the |
conduct of its business as an air common carrier, for
a flight |
destined for or returning from a location or locations
outside |
the United States without regard to previous or subsequent |
domestic
stopovers.
|
Beginning July 1, 2013, fuel and petroleum products sold |
to or used by an air carrier, certified by the carrier to be |
used for consumption, shipment, or storage in the conduct of |
its business as an air common carrier, for a flight that (i) is |
engaged in foreign trade or is engaged in trade between the |
United States and any of its possessions and (ii) transports |
at least one individual or package for hire from the city of |
origination to the city of final destination on the same |
aircraft, without regard to a change in the flight number of |
that aircraft. |
(9) Proceeds of mandatory service charges separately
|
stated on customers' bills for the purchase and consumption of |
food and
beverages, to the extent that the proceeds of the |
service charge are in fact
turned over as tips or as a |
|
substitute for tips to the employees who
participate directly |
in preparing, serving, hosting or cleaning up the
food or |
beverage function with respect to which the service charge is |
imposed.
|
(10) Until July 1, 2003, oil field exploration, drilling, |
and production
equipment,
including (i) rigs and parts of |
rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) |
pipe and tubular goods, including casing and
drill strings, |
(iii) pumps and pump-jack units, (iv) storage tanks and flow
|
lines, (v) any individual replacement part for oil field |
exploration,
drilling, and production equipment, and (vi) |
machinery and equipment purchased
for lease; but
excluding |
motor vehicles required to be registered under the Illinois
|
Vehicle Code.
|
(11) Photoprocessing machinery and equipment, including |
repair and
replacement parts, both new and used, including |
that manufactured on
special order, certified by the purchaser |
to be used primarily for
photoprocessing, and including |
photoprocessing machinery and equipment
purchased for lease.
|
(12) Until July 1, 2023, coal and aggregate exploration, |
mining, off-highway hauling,
processing,
maintenance, and |
reclamation equipment, including
replacement parts and |
equipment, and including
equipment
purchased for lease, but |
excluding motor vehicles required to be registered
under the |
Illinois Vehicle Code. The changes made to this Section by |
Public Act 97-767 apply on and after July 1, 2003, but no claim |
|
for credit or refund is allowed on or after August 16, 2013 |
(the effective date of Public Act 98-456)
for such taxes paid |
during the period beginning July 1, 2003 and ending on August |
16, 2013 (the effective date of Public Act 98-456).
|
(13) Beginning January 1, 1992 and through June 30, 2016, |
food for human consumption that is to be consumed off the |
premises
where it is sold (other than alcoholic beverages, |
soft drinks and food that
has been prepared for immediate |
consumption) and prescription and
non-prescription medicines, |
drugs, medical appliances, and insulin, urine
testing |
materials, syringes, and needles used by diabetics, for human |
use,
when purchased for use by a person receiving medical |
assistance under
Article V of the Illinois Public Aid Code who |
resides in a licensed
long-term care facility, as defined in |
the Nursing Home Care Act, or in a licensed facility as defined |
in the ID/DD Community Care Act, the MC/DD Act, or the |
Specialized Mental Health Rehabilitation Act of 2013.
|
(14) Semen used for artificial insemination of livestock |
for direct
agricultural production.
|
(15) Horses, or interests in horses, registered with and |
meeting the
requirements of any of the
Arabian Horse Club |
Registry of America, Appaloosa Horse Club, American Quarter
|
Horse Association, United States
Trotting Association, or |
Jockey Club, as appropriate, used for
purposes of breeding or |
racing for prizes. This item (15) is exempt from the |
provisions of Section 3-55, and the exemption provided for |
|
under this item (15) applies for all periods beginning May 30, |
1995, but no claim for credit or refund is allowed on or after |
January 1, 2008 (the effective date of Public Act 95-88)
for |
such taxes paid during the period beginning May 30, 2000 and |
ending on January 1, 2008 (the effective date of Public Act |
95-88).
|
(16) Computers and communications equipment utilized for |
any
hospital
purpose
and equipment used in the diagnosis,
|
analysis, or treatment of hospital patients sold to a lessor |
who leases the
equipment, under a lease of one year or longer |
executed or in effect at the
time of the purchase, to a
|
hospital
that has been issued an active tax exemption |
identification number by the
Department under Section 1g of |
the Retailers' Occupation Tax Act.
|
(17) Personal property sold to a lessor who leases the
|
property, under a
lease of one year or longer executed or in |
effect at the time of the purchase,
to a governmental body
that |
has been issued an active tax exemption identification number |
by the
Department under Section 1g of the Retailers' |
Occupation Tax Act.
|
(18) Beginning with taxable years ending on or after |
December
31, 1995
and
ending with taxable years ending on or |
before December 31, 2004,
personal property that is
donated |
for disaster relief to be used in a State or federally declared
|
disaster area in Illinois or bordering Illinois by a |
manufacturer or retailer
that is registered in this State to a |
|
corporation, society, association,
foundation, or institution |
that has been issued a sales tax exemption
identification |
number by the Department that assists victims of the disaster
|
who reside within the declared disaster area.
|
(19) Beginning with taxable years ending on or after |
December
31, 1995 and
ending with taxable years ending on or |
before December 31, 2004, personal
property that is used in |
the performance of infrastructure repairs in this
State, |
including but not limited to municipal roads and streets, |
access roads,
bridges, sidewalks, waste disposal systems, |
water and sewer line extensions,
water distribution and |
purification facilities, storm water drainage and
retention |
facilities, and sewage treatment facilities, resulting from a |
State
or federally declared disaster in Illinois or bordering |
Illinois when such
repairs are initiated on facilities located |
in the declared disaster area
within 6 months after the |
disaster.
|
(20) Beginning July 1, 1999, game or game birds sold at a |
"game breeding
and
hunting preserve area" as that term is used
|
in the
Wildlife Code. This paragraph is exempt from the |
provisions
of
Section 3-55.
|
(21) A motor vehicle, as that term is defined in Section |
1-146
of the
Illinois Vehicle Code, that is donated to a |
corporation, limited liability
company, society, association, |
foundation, or institution that is determined by
the |
Department to be organized and operated exclusively for |
|
educational
purposes. For purposes of this exemption, "a |
corporation, limited liability
company, society, association, |
foundation, or institution organized and
operated
exclusively |
for educational purposes" means all tax-supported public |
schools,
private schools that offer systematic instruction in |
useful branches of
learning by methods common to public |
schools and that compare favorably in
their scope and |
intensity with the course of study presented in tax-supported
|
schools, and vocational or technical schools or institutes |
organized and
operated exclusively to provide a course of |
study of not less than 6 weeks
duration and designed to prepare |
individuals to follow a trade or to pursue a
manual, |
technical, mechanical, industrial, business, or commercial
|
occupation.
|
(22) Beginning January 1, 2000, personal property, |
including
food,
purchased through fundraising
events for the |
benefit of
a public or private elementary or
secondary school, |
a group of those schools, or one or more school
districts if |
the events are
sponsored by an entity recognized by the school |
district that consists
primarily of volunteers and includes
|
parents and teachers of the school children. This paragraph |
does not apply
to fundraising
events (i) for the benefit of |
private home instruction or (ii)
for which the fundraising |
entity purchases the personal property sold at
the events from |
another individual or entity that sold the property for the
|
purpose of resale by the fundraising entity and that
profits |
|
from the sale to the
fundraising entity. This paragraph is |
exempt
from the provisions
of Section 3-55.
|
(23) Beginning January 1, 2000
and through December 31, |
2001, new or used automatic vending
machines that prepare and |
serve hot food and beverages, including coffee, soup,
and
|
other items, and replacement parts for these machines.
|
Beginning January 1,
2002 and through June 30, 2003, machines |
and parts for
machines used in commercial, coin-operated |
amusement
and vending business if a use or occupation tax is |
paid on the gross receipts
derived from
the use of the |
commercial, coin-operated amusement and vending machines.
This |
paragraph is exempt from the provisions of Section 3-55.
|
(24) Beginning
on August 2, 2001 (the effective date of |
Public Act 92-227),
computers and communications equipment
|
utilized for any hospital purpose and equipment used in the |
diagnosis,
analysis, or treatment of hospital patients sold to |
a lessor who leases the
equipment, under a lease of one year or |
longer executed or in effect at the
time of the purchase, to a |
hospital that has been issued an active tax
exemption |
identification number by the Department under Section 1g of |
the
Retailers' Occupation Tax Act. This paragraph is exempt |
from the provisions of
Section 3-55.
|
(25) Beginning
on August 2, 2001 (the effective date of |
Public Act 92-227),
personal property sold to a lessor who
|
leases the property, under a lease of one year or longer |
executed or in effect
at the time of the purchase, to a |
|
governmental body that has been issued an
active tax exemption |
identification number by the Department under Section 1g
of |
the Retailers' Occupation Tax Act. This paragraph is exempt |
from the
provisions of Section 3-55.
|
(26) Beginning on January 1, 2002 and through June 30, |
2016, tangible personal property
purchased
from an Illinois |
retailer by a taxpayer engaged in centralized purchasing
|
activities in Illinois who will, upon receipt of the property |
in Illinois,
temporarily store the property in Illinois (i) |
for the purpose of subsequently
transporting it outside this |
State for use or consumption thereafter solely
outside this |
State or (ii) for the purpose of being processed, fabricated, |
or
manufactured into, attached to, or incorporated into other |
tangible personal
property to be transported outside this |
State and thereafter used or consumed
solely outside this |
State. The Director of Revenue shall, pursuant to rules
|
adopted in accordance with the Illinois Administrative |
Procedure Act, issue a
permit to any taxpayer in good standing |
with the Department who is eligible for
the exemption under |
this paragraph (26). The permit issued under
this paragraph |
(26) shall authorize the holder, to the extent and
in the |
manner specified in the rules adopted under this Act, to |
purchase
tangible personal property from a retailer exempt |
from the taxes imposed by
this Act. Taxpayers shall maintain |
all necessary books and records to
substantiate the use and |
consumption of all such tangible personal property
outside of |
|
the State of Illinois.
|
(27) Beginning January 1, 2008, tangible personal property |
used in the construction or maintenance of a community water |
supply, as defined under Section 3.145 of the Environmental |
Protection Act, that is operated by a not-for-profit |
corporation that holds a valid water supply permit issued |
under Title IV of the Environmental Protection Act. This |
paragraph is exempt from the provisions of Section 3-55.
|
(28) Tangible personal property sold to a |
public-facilities corporation, as described in Section |
11-65-10 of the Illinois Municipal Code, for purposes of |
constructing or furnishing a municipal convention hall, but |
only if the legal title to the municipal convention hall is |
transferred to the municipality without any further |
consideration by or on behalf of the municipality at the time |
of the completion of the municipal convention hall or upon the |
retirement or redemption of any bonds or other debt |
instruments issued by the public-facilities corporation in |
connection with the development of the municipal convention |
hall. This exemption includes existing public-facilities |
corporations as provided in Section 11-65-25 of the Illinois |
Municipal Code. This paragraph is exempt from the provisions |
of Section 3-55. |
(29) Beginning January 1, 2010 and continuing through |
December 31, 2024, materials, parts, equipment, components, |
and furnishings incorporated into or upon an aircraft as part |
|
of the modification, refurbishment, completion, replacement, |
repair, or maintenance of the aircraft. This exemption |
includes consumable supplies used in the modification, |
refurbishment, completion, replacement, repair, and |
maintenance of aircraft, but excludes any materials, parts, |
equipment, components, and consumable supplies used in the |
modification, replacement, repair, and maintenance of aircraft |
engines or power plants, whether such engines or power plants |
are installed or uninstalled upon any such aircraft. |
"Consumable supplies" include, but are not limited to, |
adhesive, tape, sandpaper, general purpose lubricants, |
cleaning solution, latex gloves, and protective films. This |
exemption applies only to the transfer of qualifying tangible |
personal property incident to the modification, refurbishment, |
completion, replacement, repair, or maintenance of an aircraft |
by persons who (i) hold an Air Agency Certificate and are |
empowered to operate an approved repair station by the Federal |
Aviation Administration, (ii) have a Class IV Rating, and |
(iii) conduct operations in accordance with Part 145 of the |
Federal Aviation Regulations. The exemption does not include |
aircraft operated by a commercial air carrier providing |
scheduled passenger air service pursuant to authority issued |
under Part 121 or Part 129 of the Federal Aviation |
Regulations. The changes made to this paragraph (29) by Public |
Act 98-534 are declarative of existing law. It is the intent of |
the General Assembly that the exemption under this paragraph |
|
(29) applies continuously from January 1, 2010 through |
December 31, 2024; however, no claim for credit or refund is |
allowed for taxes paid as a result of the disallowance of this |
exemption on or after January 1, 2015 and prior to the |
effective date of this amendatory Act of the 101st General |
Assembly. |
(30) Beginning January 1, 2017 and through December 31, |
2026, menstrual pads, tampons, and menstrual cups. |
(31) Tangible personal property transferred to a purchaser |
who is exempt from tax by operation of federal law. This |
paragraph is exempt from the provisions of Section 3-55. |
(32) Qualified tangible personal property used in the |
construction or operation of a data center that has been |
granted a certificate of exemption by the Department of |
Commerce and Economic Opportunity, whether that tangible |
personal property is purchased by the owner, operator, or |
tenant of the data center or by a contractor or subcontractor |
of the owner, operator, or tenant. Data centers that would |
have qualified for a certificate of exemption prior to January |
1, 2020 had this amendatory Act of the 101st General Assembly |
been in effect, may apply for and obtain an exemption for |
subsequent purchases of computer equipment or enabling |
software purchased or leased to upgrade, supplement, or |
replace computer equipment or enabling software purchased or |
leased in the original investment that would have qualified. |
The Department of Commerce and Economic Opportunity shall |
|
grant a certificate of exemption under this item (32) to |
qualified data centers as defined by Section 605-1025 of the |
Department of Commerce and Economic Opportunity Law of the
|
Civil Administrative Code of Illinois. |
For the purposes of this item (32): |
"Data center" means a building or a series of |
buildings rehabilitated or constructed to house working |
servers in one physical location or multiple sites within |
the State of Illinois. |
"Qualified tangible personal property" means: |
electrical systems and equipment; climate control and |
chilling equipment and systems; mechanical systems and |
equipment; monitoring and secure systems; emergency |
generators; hardware; computers; servers; data storage |
devices; network connectivity equipment; racks; cabinets; |
telecommunications cabling infrastructure; raised floor |
systems; peripheral components or systems; software; |
mechanical, electrical, or plumbing systems; battery |
systems; cooling systems and towers; temperature control |
systems; other cabling; and other data center |
infrastructure equipment and systems necessary to operate |
qualified tangible personal property, including fixtures; |
and component parts of any of the foregoing, including |
installation, maintenance, repair, refurbishment, and |
replacement of qualified tangible personal property to |
generate, transform, transmit, distribute, or manage |
|
electricity necessary to operate qualified tangible |
personal property; and all other tangible personal |
property that is essential to the operations of a computer |
data center. The term "qualified tangible personal |
property" also includes building materials physically |
incorporated in to the qualifying data center. To document |
the exemption allowed under this Section, the retailer |
must obtain from the purchaser a copy of the certificate |
of eligibility issued by the Department of Commerce and |
Economic Opportunity. |
This item (32) is exempt from the provisions of Section |
3-55. |
(33) Tangible personal property sold by or on behalf of |
the State Treasurer pursuant to the Revised Uniform Unclaimed |
Property Act. This item (33) is exempt from the provisions of |
Section 3-55. |
(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; |
101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
|
Section 20. The Retailers' Occupation Tax Act is amended |
by changing Section 2-5 as follows:
|
(35 ILCS 120/2-5)
|
Sec. 2-5. Exemptions. Gross receipts from proceeds from |
the sale of
the following tangible personal property are |
exempt from the tax imposed
by this Act:
|
|
(1) Farm chemicals.
|
(2) Farm machinery and equipment, both new and used, |
including that
manufactured on special order, certified by |
the purchaser to be used
primarily for production |
agriculture or State or federal agricultural
programs, |
including individual replacement parts for the machinery |
and
equipment, including machinery and equipment purchased |
for lease,
and including implements of husbandry defined |
in Section 1-130 of
the Illinois Vehicle Code, farm |
machinery and agricultural chemical and
fertilizer |
spreaders, and nurse wagons required to be registered
|
under Section 3-809 of the Illinois Vehicle Code,
but
|
excluding other motor vehicles required to be registered |
under the Illinois
Vehicle Code.
Horticultural polyhouses |
or hoop houses used for propagating, growing, or
|
overwintering plants shall be considered farm machinery |
and equipment under
this item (2).
Agricultural chemical |
tender tanks and dry boxes shall include units sold
|
separately from a motor vehicle required to be licensed |
and units sold mounted
on a motor vehicle required to be |
licensed, if the selling price of the tender
is separately |
stated.
|
Farm machinery and equipment shall include precision |
farming equipment
that is
installed or purchased to be |
installed on farm machinery and equipment
including, but |
not limited to, tractors, harvesters, sprayers, planters,
|
|
seeders, or spreaders.
Precision farming equipment |
includes, but is not limited to,
soil testing sensors, |
computers, monitors, software, global positioning
and |
mapping systems, and other such equipment.
|
Farm machinery and equipment also includes computers, |
sensors, software, and
related equipment used primarily in |
the
computer-assisted operation of production agriculture |
facilities, equipment,
and activities such as, but
not |
limited to,
the collection, monitoring, and correlation of
|
animal and crop data for the purpose of
formulating animal |
diets and agricultural chemicals. This item (2) is exempt
|
from the provisions of
Section 2-70.
|
(3) Until July 1, 2003, distillation machinery and |
equipment, sold as a
unit or kit,
assembled or installed |
by the retailer, certified by the user to be used
only for |
the production of ethyl alcohol that will be used for |
consumption
as motor fuel or as a component of motor fuel |
for the personal use of the
user, and not subject to sale |
or resale.
|
(4) Until July 1, 2003 and beginning again September |
1, 2004 through August 30, 2014, graphic arts machinery |
and equipment, including
repair and
replacement parts, |
both new and used, and including that manufactured on
|
special order or purchased for lease, certified by the |
purchaser to be used
primarily for graphic arts |
production.
Equipment includes chemicals or
chemicals |
|
acting as catalysts but only if
the chemicals or chemicals |
acting as catalysts effect a direct and immediate
change |
upon a
graphic arts product. Beginning on July 1, 2017, |
graphic arts machinery and equipment is included in the |
manufacturing and assembling machinery and equipment |
exemption under paragraph (14).
|
(5) A motor vehicle that is used for automobile |
renting, as defined in the Automobile Renting Occupation |
and Use Tax Act. This paragraph is exempt from
the |
provisions of Section 2-70.
|
(6) Personal property sold by a teacher-sponsored |
student organization
affiliated with an elementary or |
secondary school located in Illinois.
|
(7) Until July 1, 2003, proceeds of that portion of |
the selling price of
a passenger car the
sale of which is |
subject to the Replacement Vehicle Tax.
|
(8) Personal property sold to an Illinois county fair |
association for
use in conducting, operating, or promoting |
the county fair.
|
(9) Personal property sold to a not-for-profit arts
or |
cultural organization that establishes, by proof required |
by the Department
by
rule, that it has received an |
exemption under Section 501(c)(3) of the
Internal Revenue |
Code and that is organized and operated primarily for the
|
presentation
or support of arts or cultural programming, |
activities, or services. These
organizations include, but |
|
are not limited to, music and dramatic arts
organizations |
such as symphony orchestras and theatrical groups, arts |
and
cultural service organizations, local arts councils, |
visual arts organizations,
and media arts organizations.
|
On and after July 1, 2001 (the effective date of Public Act |
92-35), however, an entity otherwise eligible for this |
exemption shall not
make tax-free purchases unless it has |
an active identification number issued by
the Department.
|
(10) Personal property sold by a corporation, society, |
association,
foundation, institution, or organization, |
other than a limited liability
company, that is organized |
and operated as a not-for-profit service enterprise
for |
the benefit of persons 65 years of age or older if the |
personal property
was not purchased by the enterprise for |
the purpose of resale by the
enterprise.
|
(11) Personal property sold to a governmental body, to |
a corporation,
society, association, foundation, or |
institution organized and operated
exclusively for |
charitable, religious, or educational purposes, or to a
|
not-for-profit corporation, society, association, |
foundation, institution,
or organization that has no |
compensated officers or employees and that is
organized |
and operated primarily for the recreation of persons 55 |
years of
age or older. A limited liability company may |
qualify for the exemption under
this paragraph only if the |
limited liability company is organized and operated
|
|
exclusively for educational purposes. On and after July 1, |
1987, however, no
entity otherwise eligible for this |
exemption shall make tax-free purchases
unless it has an |
active identification number issued by the Department.
|
(12) (Blank).
|
(12-5) On and after July 1, 2003 and through June 30, |
2004, motor vehicles of the second division
with a gross |
vehicle weight in excess of 8,000 pounds
that
are
subject |
to the commercial distribution fee imposed under Section |
3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, |
2004 and through June 30, 2005, the use in this State of |
motor vehicles of the second division: (i) with a gross |
vehicle weight rating in excess of 8,000 pounds; (ii) that |
are subject to the commercial distribution fee imposed |
under Section 3-815.1 of the Illinois Vehicle Code; and |
(iii) that are primarily used for commercial purposes. |
Through June 30, 2005, this
exemption applies to repair |
and replacement parts added
after the
initial purchase of |
such a motor vehicle if that motor vehicle is used in a
|
manner that
would qualify for the rolling stock exemption |
otherwise provided for in this
Act. For purposes of this |
paragraph, "used for commercial purposes" means the |
transportation of persons or property in furtherance of |
any commercial or industrial enterprise whether for-hire |
or not.
|
(13) Proceeds from sales to owners, lessors, or
|
|
shippers of
tangible personal property that is utilized by |
interstate carriers for
hire for use as rolling stock |
moving in interstate commerce
and equipment operated by a |
telecommunications provider, licensed as a
common carrier |
by the Federal Communications Commission, which is
|
permanently installed in or affixed to aircraft moving in |
interstate commerce.
|
(14) Machinery and equipment that will be used by the |
purchaser, or a
lessee of the purchaser, primarily in the |
process of manufacturing or
assembling tangible personal |
property for wholesale or retail sale or
lease, whether |
the sale or lease is made directly by the manufacturer or |
by
some other person, whether the materials used in the |
process are owned by
the manufacturer or some other |
person, or whether the sale or lease is made
apart from or |
as an incident to the seller's engaging in the service
|
occupation of producing machines, tools, dies, jigs, |
patterns, gauges, or
other similar items of no commercial |
value on special order for a particular
purchaser. The |
exemption provided by this paragraph (14) does not include |
machinery and equipment used in (i) the generation of |
electricity for wholesale or retail sale; (ii) the |
generation or treatment of natural or artificial gas for |
wholesale or retail sale that is delivered to customers |
through pipes, pipelines, or mains; or (iii) the treatment |
of water for wholesale or retail sale that is delivered to |
|
customers through pipes, pipelines, or mains. The |
provisions of Public Act 98-583 are declaratory of |
existing law as to the meaning and scope of this |
exemption. Beginning on July 1, 2017, the exemption |
provided by this paragraph (14) includes, but is not |
limited to, graphic arts machinery and equipment, as |
defined in paragraph (4) of this Section.
|
(15) Proceeds of mandatory service charges separately |
stated on
customers' bills for purchase and consumption of |
food and beverages, to the
extent that the proceeds of the |
service charge are in fact turned over as
tips or as a |
substitute for tips to the employees who participate |
directly
in preparing, serving, hosting or cleaning up the |
food or beverage function
with respect to which the |
service charge is imposed.
|
(16) Tangible personal property sold to a purchaser if |
the purchaser is exempt from use tax by operation of |
federal law. This paragraph is exempt from the provisions |
of Section 2-70.
|
(17) Tangible personal property sold to a common |
carrier by rail or
motor that
receives the physical |
possession of the property in Illinois and that
transports |
the property, or shares with another common carrier in the
|
transportation of the property, out of Illinois on a |
standard uniform bill
of lading showing the seller of the |
property as the shipper or consignor of
the property to a |
|
destination outside Illinois, for use outside Illinois.
|
(18) Legal tender, currency, medallions, or gold or |
silver coinage
issued by the State of Illinois, the |
government of the United States of
America, or the |
government of any foreign country, and bullion.
|
(19) Until July 1, 2003, oil field exploration, |
drilling, and production
equipment, including
(i) rigs and |
parts of rigs, rotary rigs, cable tool
rigs, and workover |
rigs, (ii) pipe and tubular goods, including casing and
|
drill strings, (iii) pumps and pump-jack units, (iv) |
storage tanks and flow
lines, (v) any individual |
replacement part for oil field exploration,
drilling, and |
production equipment, and (vi) machinery and equipment |
purchased
for lease; but
excluding motor vehicles required |
to be registered under the Illinois
Vehicle Code.
|
(20) Photoprocessing machinery and equipment, |
including repair and
replacement parts, both new and used, |
including that manufactured on
special order, certified by |
the purchaser to be used primarily for
photoprocessing, |
and including photoprocessing machinery and equipment
|
purchased for lease.
|
(21) Until July 1, 2023, coal and aggregate |
exploration, mining, off-highway hauling,
processing,
|
maintenance, and reclamation equipment, including
|
replacement parts and equipment, and including
equipment |
purchased for lease, but excluding motor vehicles required |
|
to be
registered under the Illinois Vehicle Code. The |
changes made to this Section by Public Act 97-767 apply on |
and after July 1, 2003, but no claim for credit or refund |
is allowed on or after August 16, 2013 (the effective date |
of Public Act 98-456)
for such taxes paid during the |
period beginning July 1, 2003 and ending on August 16, |
2013 (the effective date of Public Act 98-456).
|
(22) Until June 30, 2013, fuel and petroleum products |
sold to or used by an air carrier,
certified by the carrier |
to be used for consumption, shipment, or storage
in the |
conduct of its business as an air common carrier, for a |
flight
destined for or returning from a location or |
locations
outside the United States without regard to |
previous or subsequent domestic
stopovers.
|
Beginning July 1, 2013, fuel and petroleum products |
sold to or used by an air carrier, certified by the carrier |
to be used for consumption, shipment, or storage in the |
conduct of its business as an air common carrier, for a |
flight that (i) is engaged in foreign trade or is engaged |
in trade between the United States and any of its |
possessions and (ii) transports at least one individual or |
package for hire from the city of origination to the city |
of final destination on the same aircraft, without regard |
to a change in the flight number of that aircraft. |
(23) A transaction in which the purchase order is |
received by a florist
who is located outside Illinois, but |
|
who has a florist located in Illinois
deliver the property |
to the purchaser or the purchaser's donee in Illinois.
|
(24) Fuel consumed or used in the operation of ships, |
barges, or vessels
that are used primarily in or for the |
transportation of property or the
conveyance of persons |
for hire on rivers bordering on this State if the
fuel is |
delivered by the seller to the purchaser's barge, ship, or |
vessel
while it is afloat upon that bordering river.
|
(25) Except as provided in item (25-5) of this |
Section, a
motor vehicle sold in this State to a |
nonresident even though the
motor vehicle is delivered to |
the nonresident in this State, if the motor
vehicle is not |
to be titled in this State, and if a drive-away permit
is |
issued to the motor vehicle as provided in Section 3-603 |
of the Illinois
Vehicle Code or if the nonresident |
purchaser has vehicle registration
plates to transfer to |
the motor vehicle upon returning to his or her home
state. |
The issuance of the drive-away permit or having
the
|
out-of-state registration plates to be transferred is |
prima facie evidence
that the motor vehicle will not be |
titled in this State.
|
(25-5) The exemption under item (25) does not apply if |
the state in which the motor vehicle will be titled does |
not allow a reciprocal exemption for a motor vehicle sold |
and delivered in that state to an Illinois resident but |
titled in Illinois. The tax collected under this Act on |
|
the sale of a motor vehicle in this State to a resident of |
another state that does not allow a reciprocal exemption |
shall be imposed at a rate equal to the state's rate of tax |
on taxable property in the state in which the purchaser is |
a resident, except that the tax shall not exceed the tax |
that would otherwise be imposed under this Act. At the |
time of the sale, the purchaser shall execute a statement, |
signed under penalty of perjury, of his or her intent to |
title the vehicle in the state in which the purchaser is a |
resident within 30 days after the sale and of the fact of |
the payment to the State of Illinois of tax in an amount |
equivalent to the state's rate of tax on taxable property |
in his or her state of residence and shall submit the |
statement to the appropriate tax collection agency in his |
or her state of residence. In addition, the retailer must |
retain a signed copy of the statement in his or her |
records. Nothing in this item shall be construed to |
require the removal of the vehicle from this state |
following the filing of an intent to title the vehicle in |
the purchaser's state of residence if the purchaser titles |
the vehicle in his or her state of residence within 30 days |
after the date of sale. The tax collected under this Act in |
accordance with this item (25-5) shall be proportionately |
distributed as if the tax were collected at the 6.25% |
general rate imposed under this Act.
|
(25-7) Beginning on July 1, 2007, no tax is imposed |
|
under this Act on the sale of an aircraft, as defined in |
Section 3 of the Illinois Aeronautics Act, if all of the |
following conditions are met: |
(1) the aircraft leaves this State within 15 days |
after the later of either the issuance of the final |
billing for the sale of the aircraft, or the |
authorized approval for return to service, completion |
of the maintenance record entry, and completion of the |
test flight and ground test for inspection, as |
required by 14 C.F.R. 91.407; |
(2) the aircraft is not based or registered in |
this State after the sale of the aircraft; and |
(3) the seller retains in his or her books and |
records and provides to the Department a signed and |
dated certification from the purchaser, on a form |
prescribed by the Department, certifying that the |
requirements of this item (25-7) are met. The |
certificate must also include the name and address of |
the purchaser, the address of the location where the |
aircraft is to be titled or registered, the address of |
the primary physical location of the aircraft, and |
other information that the Department may reasonably |
require. |
For purposes of this item (25-7): |
"Based in this State" means hangared, stored, or |
otherwise used, excluding post-sale customizations as |
|
defined in this Section, for 10 or more days in each |
12-month period immediately following the date of the sale |
of the aircraft. |
"Registered in this State" means an aircraft |
registered with the Department of Transportation, |
Aeronautics Division, or titled or registered with the |
Federal Aviation Administration to an address located in |
this State. |
This paragraph (25-7) is exempt from the provisions
of
|
Section 2-70.
|
(26) Semen used for artificial insemination of |
livestock for direct
agricultural production.
|
(27) Horses, or interests in horses, registered with |
and meeting the
requirements of any of the
Arabian Horse |
Club Registry of America, Appaloosa Horse Club, American |
Quarter
Horse Association, United States
Trotting |
Association, or Jockey Club, as appropriate, used for
|
purposes of breeding or racing for prizes. This item (27) |
is exempt from the provisions of Section 2-70, and the |
exemption provided for under this item (27) applies for |
all periods beginning May 30, 1995, but no claim for |
credit or refund is allowed on or after January 1, 2008 |
(the effective date of Public Act 95-88)
for such taxes |
paid during the period beginning May 30, 2000 and ending |
on January 1, 2008 (the effective date of Public Act |
95-88).
|
|
(28) Computers and communications equipment utilized |
for any
hospital
purpose
and equipment used in the |
diagnosis,
analysis, or treatment of hospital patients |
sold to a lessor who leases the
equipment, under a lease of |
one year or longer executed or in effect at the
time of the |
purchase, to a
hospital
that has been issued an active tax |
exemption identification number by the
Department under |
Section 1g of this Act.
|
(29) Personal property sold to a lessor who leases the
|
property, under a
lease of one year or longer executed or |
in effect at the time of the purchase,
to a governmental |
body
that has been issued an active tax exemption |
identification number by the
Department under Section 1g |
of this Act.
|
(30) Beginning with taxable years ending on or after |
December
31, 1995
and
ending with taxable years ending on |
or before December 31, 2004,
personal property that is
|
donated for disaster relief to be used in a State or |
federally declared
disaster area in Illinois or bordering |
Illinois by a manufacturer or retailer
that is registered |
in this State to a corporation, society, association,
|
foundation, or institution that has been issued a sales |
tax exemption
identification number by the Department that |
assists victims of the disaster
who reside within the |
declared disaster area.
|
(31) Beginning with taxable years ending on or after |
|
December
31, 1995 and
ending with taxable years ending on |
or before December 31, 2004, personal
property that is |
used in the performance of infrastructure repairs in this
|
State, including but not limited to municipal roads and |
streets, access roads,
bridges, sidewalks, waste disposal |
systems, water and sewer line extensions,
water |
distribution and purification facilities, storm water |
drainage and
retention facilities, and sewage treatment |
facilities, resulting from a State
or federally declared |
disaster in Illinois or bordering Illinois when such
|
repairs are initiated on facilities located in the |
declared disaster area
within 6 months after the disaster.
|
(32) Beginning July 1, 1999, game or game birds sold |
at a "game breeding
and
hunting preserve area" as that |
term is used
in the
Wildlife Code. This paragraph is |
exempt from the provisions
of
Section 2-70.
|
(33) A motor vehicle, as that term is defined in |
Section 1-146
of the
Illinois Vehicle Code, that is |
donated to a corporation, limited liability
company, |
society, association, foundation, or institution that is |
determined by
the Department to be organized and operated |
exclusively for educational
purposes. For purposes of this |
exemption, "a corporation, limited liability
company, |
society, association, foundation, or institution organized |
and
operated
exclusively for educational purposes" means |
all tax-supported public schools,
private schools that |
|
offer systematic instruction in useful branches of
|
learning by methods common to public schools and that |
compare favorably in
their scope and intensity with the |
course of study presented in tax-supported
schools, and |
vocational or technical schools or institutes organized |
and
operated exclusively to provide a course of study of |
not less than 6 weeks
duration and designed to prepare |
individuals to follow a trade or to pursue a
manual, |
technical, mechanical, industrial, business, or commercial
|
occupation.
|
(34) Beginning January 1, 2000, personal property, |
including food, purchased
through fundraising events for |
the benefit of a public or private elementary or
secondary |
school, a group of those schools, or one or more school |
districts if
the events are sponsored by an entity |
recognized by the school district that
consists primarily |
of volunteers and includes parents and teachers of the
|
school children. This paragraph does not apply to |
fundraising events (i) for
the benefit of private home |
instruction or (ii) for which the fundraising
entity |
purchases the personal property sold at the events from |
another
individual or entity that sold the property for |
the purpose of resale by the
fundraising entity and that |
profits from the sale to the fundraising entity.
This |
paragraph is exempt from the provisions of Section 2-70.
|
(35) Beginning January 1, 2000 and through December |
|
31, 2001, new or used
automatic vending machines that |
prepare and serve hot food and beverages,
including |
coffee, soup, and other items, and replacement parts for |
these
machines. Beginning January 1, 2002 and through June |
30, 2003, machines
and parts for machines used in
|
commercial, coin-operated amusement and vending business |
if a use or occupation
tax is paid on the gross receipts |
derived from the use of the commercial,
coin-operated |
amusement and vending machines. This paragraph is exempt |
from
the provisions of Section 2-70.
|
(35-5) Beginning August 23, 2001 and through June 30, |
2016, food for human consumption that is to be consumed |
off
the premises where it is sold (other than alcoholic |
beverages, soft drinks,
and food that has been prepared |
for immediate consumption) and prescription
and |
nonprescription medicines, drugs, medical appliances, and |
insulin, urine
testing materials, syringes, and needles |
used by diabetics, for human use, when
purchased for use |
by a person receiving medical assistance under Article V |
of
the Illinois Public Aid Code who resides in a licensed |
long-term care facility,
as defined in the Nursing Home |
Care Act, or a licensed facility as defined in the ID/DD |
Community Care Act, the MC/DD Act, or the Specialized |
Mental Health Rehabilitation Act of 2013.
|
(36) Beginning August 2, 2001, computers and |
communications equipment
utilized for any hospital purpose |
|
and equipment used in the diagnosis,
analysis, or |
treatment of hospital patients sold to a lessor who leases |
the
equipment, under a lease of one year or longer |
executed or in effect at the
time of the purchase, to a |
hospital that has been issued an active tax
exemption |
identification number by the Department under Section 1g |
of this Act.
This paragraph is exempt from the provisions |
of Section 2-70.
|
(37) Beginning August 2, 2001, personal property sold |
to a lessor who
leases the property, under a lease of one |
year or longer executed or in effect
at the time of the |
purchase, to a governmental body that has been issued an
|
active tax exemption identification number by the |
Department under Section 1g
of this Act. This paragraph is |
exempt from the provisions of Section 2-70.
|
(38) Beginning on January 1, 2002 and through June 30, |
2016, tangible personal property purchased
from an |
Illinois retailer by a taxpayer engaged in centralized |
purchasing
activities in Illinois who will, upon receipt |
of the property in Illinois,
temporarily store the |
property in Illinois (i) for the purpose of subsequently
|
transporting it outside this State for use or consumption |
thereafter solely
outside this State or (ii) for the |
purpose of being processed, fabricated, or
manufactured |
into, attached to, or incorporated into other tangible |
personal
property to be transported outside this State and |
|
thereafter used or consumed
solely outside this State. The |
Director of Revenue shall, pursuant to rules
adopted in |
accordance with the Illinois Administrative Procedure Act, |
issue a
permit to any taxpayer in good standing with the |
Department who is eligible for
the exemption under this |
paragraph (38). The permit issued under
this paragraph |
(38) shall authorize the holder, to the extent and
in the |
manner specified in the rules adopted under this Act, to |
purchase
tangible personal property from a retailer exempt |
from the taxes imposed by
this Act. Taxpayers shall |
maintain all necessary books and records to
substantiate |
the use and consumption of all such tangible personal |
property
outside of the State of Illinois.
|
(39) Beginning January 1, 2008, tangible personal |
property used in the construction or maintenance of a |
community water supply, as defined under Section 3.145 of |
the Environmental Protection Act, that is operated by a |
not-for-profit corporation that holds a valid water supply |
permit issued under Title IV of the Environmental |
Protection Act. This paragraph is exempt from the |
provisions of Section 2-70.
|
(40) Beginning January 1, 2010 and continuing through |
December 31, 2024, materials, parts, equipment, |
components, and furnishings incorporated into or upon an |
aircraft as part of the modification, refurbishment, |
completion, replacement, repair, or maintenance of the |
|
aircraft. This exemption includes consumable supplies used |
in the modification, refurbishment, completion, |
replacement, repair, and maintenance of aircraft, but |
excludes any materials, parts, equipment, components, and |
consumable supplies used in the modification, replacement, |
repair, and maintenance of aircraft engines or power |
plants, whether such engines or power plants are installed |
or uninstalled upon any such aircraft. "Consumable |
supplies" include, but are not limited to, adhesive, tape, |
sandpaper, general purpose lubricants, cleaning solution, |
latex gloves, and protective films. This exemption applies |
only to the sale of qualifying tangible personal property |
to persons who modify, refurbish, complete, replace, or |
maintain an aircraft and who (i) hold an Air Agency |
Certificate and are empowered to operate an approved |
repair station by the Federal Aviation Administration, |
(ii) have a Class IV Rating, and (iii) conduct operations |
in accordance with Part 145 of the Federal Aviation |
Regulations. The exemption does not include aircraft |
operated by a commercial air carrier providing scheduled |
passenger air service pursuant to authority issued under |
Part 121 or Part 129 of the Federal Aviation Regulations. |
The changes made to this paragraph (40) by Public Act |
98-534 are declarative of existing law. It is the intent |
of the General Assembly that the exemption under this |
paragraph (40) applies continuously from January 1, 2010 |
|
through December 31, 2024; however, no claim for credit or |
refund is allowed for taxes paid as a result of the |
disallowance of this exemption on or after January 1, 2015 |
and prior to the effective date of this amendatory Act of |
the 101st General Assembly. |
(41) Tangible personal property sold to a |
public-facilities corporation, as described in Section |
11-65-10 of the Illinois Municipal Code, for purposes of |
constructing or furnishing a municipal convention hall, |
but only if the legal title to the municipal convention |
hall is transferred to the municipality without any |
further consideration by or on behalf of the municipality |
at the time of the completion of the municipal convention |
hall or upon the retirement or redemption of any bonds or |
other debt instruments issued by the public-facilities |
corporation in connection with the development of the |
municipal convention hall. This exemption includes |
existing public-facilities corporations as provided in |
Section 11-65-25 of the Illinois Municipal Code. This |
paragraph is exempt from the provisions of Section 2-70. |
(42) Beginning January 1, 2017 and through December |
31, 2026, menstrual pads, tampons, and menstrual cups. |
(43) Merchandise that is subject to the Rental |
Purchase Agreement Occupation and Use Tax. The purchaser |
must certify that the item is purchased to be rented |
subject to a rental purchase agreement, as defined in the |
|
Rental Purchase Agreement Act, and provide proof of |
registration under the Rental Purchase Agreement |
Occupation and Use Tax Act. This paragraph is exempt from |
the provisions of Section 2-70. |
(44) Qualified tangible personal property used in the |
construction or operation of a data center that has been |
granted a certificate of exemption by the Department of |
Commerce and Economic Opportunity, whether that tangible |
personal property is purchased by the owner, operator, or |
tenant of the data center or by a contractor or |
subcontractor of the owner, operator, or tenant. Data |
centers that would have qualified for a certificate of |
exemption prior to January 1, 2020 had this amendatory Act |
of the 101st General Assembly been in effect, may apply |
for and obtain an exemption for subsequent purchases of |
computer equipment or enabling software purchased or |
leased to upgrade, supplement, or replace computer |
equipment or enabling software purchased or leased in the |
original investment that would have qualified. |
The Department of Commerce and Economic Opportunity |
shall grant a certificate of exemption under this item |
(44) to qualified data centers as defined by Section |
605-1025 of the Department of Commerce and Economic |
Opportunity Law of the
Civil Administrative Code of |
Illinois. |
For the purposes of this item (44): |
|
"Data center" means a building or a series of |
buildings rehabilitated or constructed to house |
working servers in one physical location or multiple |
sites within the State of Illinois. |
"Qualified tangible personal property" means: |
electrical systems and equipment; climate control and |
chilling equipment and systems; mechanical systems and |
equipment; monitoring and secure systems; emergency |
generators; hardware; computers; servers; data storage |
devices; network connectivity equipment; racks; |
cabinets; telecommunications cabling infrastructure; |
raised floor systems; peripheral components or |
systems; software; mechanical, electrical, or plumbing |
systems; battery systems; cooling systems and towers; |
temperature control systems; other cabling; and other |
data center infrastructure equipment and systems |
necessary to operate qualified tangible personal |
property, including fixtures; and component parts of |
any of the foregoing, including installation, |
maintenance, repair, refurbishment, and replacement of |
qualified tangible personal property to generate, |
transform, transmit, distribute, or manage electricity |
necessary to operate qualified tangible personal |
property; and all other tangible personal property |
that is essential to the operations of a computer data |
center. The term "qualified tangible personal |
|
property" also includes building materials physically |
incorporated into in to the qualifying data center. To |
document the exemption allowed under this Section, the |
retailer must obtain from the purchaser a copy of the |
certificate of eligibility issued by the Department of |
Commerce and Economic Opportunity. |
This item (44) is exempt from the provisions of |
Section 2-70. |
(45) Beginning January 1, 2020 and through December |
31, 2020, sales of tangible personal property made by a |
marketplace seller over a marketplace for which tax is due |
under this Act but for which use tax has been collected and |
remitted to the Department by a marketplace facilitator |
under Section 2d of the Use Tax Act are exempt from tax |
under this Act. A marketplace seller claiming this |
exemption shall maintain books and records demonstrating |
that the use tax on such sales has been collected and |
remitted by a marketplace facilitator. Marketplace sellers |
that have properly remitted tax under this Act on such |
sales may file a claim for credit as provided in Section 6 |
of this Act. No claim is allowed, however, for such taxes |
for which a credit or refund has been issued to the |
marketplace facilitator under the Use Tax Act, or for |
which the marketplace facilitator has filed a claim for |
credit or refund under the Use Tax Act. |
(46) Tangible personal property sold by or on behalf |
|
of the State Treasurer pursuant to the Revised Uniform |
Unclaimed Property Act. This item (46) is exempt from the |
provisions of Section 2-70. |
(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; |
101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff. |
8-27-21; revised 11-9-21.)
|
Section 99. Effective date. This Act takes effect upon |
becoming law.
|