Bill Text: IL HB3565 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Property Tax Code. Provides that certain property may be certified by the Department of Revenue as containing a mega project. Provides that a "mega project" is a project with respect to which a company makes a specified investment during a specified investment period. Provides that the mega project property is eligible for an assessment freeze. Provides that mega project property may be granted an abatement. Provides that a company that operates a mega project shall enter into an agreement with the municipality in which the project is located to make certain special payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or operation of a mega project is exempt from the taxes imposed under those Acts. Effective June 1, 2023.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB3565 Detail]
Download: Illinois-2023-HB3565-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Use Tax Act is amended by changing Section | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | 3-5 as follows:
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6 | (35 ILCS 105/3-5)
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7 | Sec. 3-5. Exemptions. Use of the following tangible | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | personal property is exempt from the tax imposed by this Act:
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9 | (1) Personal property purchased from a corporation, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | society, association,
foundation, institution, or | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | organization, other than a limited liability
company, that is | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | organized and operated as a not-for-profit service enterprise
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13 | for the benefit of persons 65 years of age or older if the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | personal property was not purchased by the enterprise for the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15 | purpose of resale by the
enterprise.
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16 | (2) Personal property purchased by a not-for-profit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
17 | Illinois county
fair association for use in conducting, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
18 | operating, or promoting the
county fair.
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19 | (3) Personal property purchased by a not-for-profit
arts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20 | or cultural organization that establishes, by proof required | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
21 | by the
Department by
rule, that it has received an exemption | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
22 | under Section 501(c)(3) of the Internal
Revenue Code and that | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
23 | is organized and operated primarily for the
presentation
or |
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1 | support of arts or cultural programming, activities, or | ||||||
2 | services. These
organizations include, but are not limited to, | ||||||
3 | music and dramatic arts
organizations such as symphony | ||||||
4 | orchestras and theatrical groups, arts and
cultural service | ||||||
5 | organizations, local arts councils, visual arts organizations,
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6 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
7 | effective date of Public Act 92-35), however, an entity | ||||||
8 | otherwise eligible for this exemption shall not
make tax-free | ||||||
9 | purchases unless it has an active identification number issued | ||||||
10 | by
the Department.
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11 | (4) Personal property purchased by a governmental body, by | ||||||
12 | a
corporation, society, association, foundation, or | ||||||
13 | institution organized and
operated exclusively for charitable, | ||||||
14 | religious, or educational purposes, or
by a not-for-profit | ||||||
15 | corporation, society, association, foundation,
institution, or | ||||||
16 | organization that has no compensated officers or employees
and | ||||||
17 | that is organized and operated primarily for the recreation of | ||||||
18 | persons
55 years of age or older. A limited liability company | ||||||
19 | may qualify for the
exemption under this paragraph only if the | ||||||
20 | limited liability company is
organized and operated | ||||||
21 | exclusively for educational purposes. On and after July
1, | ||||||
22 | 1987, however, no entity otherwise eligible for this exemption | ||||||
23 | shall make
tax-free purchases unless it has an active | ||||||
24 | exemption identification number
issued by the Department.
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25 | (5) Until July 1, 2003, a passenger car that is a | ||||||
26 | replacement vehicle to
the extent that the
purchase price of |
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1 | the car is subject to the Replacement Vehicle Tax.
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2 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
3 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
4 | equipment, including
repair and replacement
parts, both new | ||||||
5 | and used, and including that manufactured on special order,
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6 | certified by the purchaser to be used primarily for graphic | ||||||
7 | arts production,
and including machinery and equipment | ||||||
8 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
9 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
10 | acting as catalysts effect a direct and immediate change
upon | ||||||
11 | a graphic arts product. Beginning on July 1, 2017, graphic | ||||||
12 | arts machinery and equipment is included in the manufacturing | ||||||
13 | and assembling machinery and equipment exemption under | ||||||
14 | paragraph (18).
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15 | (7) Farm chemicals.
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16 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
17 | coinage issued by
the State of Illinois, the government of the | ||||||
18 | United States of America, or the
government of any foreign | ||||||
19 | country, and bullion.
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20 | (9) Personal property purchased from a teacher-sponsored | ||||||
21 | student
organization affiliated with an elementary or | ||||||
22 | secondary school located in
Illinois.
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23 | (10) A motor vehicle that is used for automobile renting, | ||||||
24 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
25 | Act.
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26 | (11) Farm machinery and equipment, both new and used,
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1 | including that manufactured on special order, certified by the | ||||||
2 | purchaser
to be used primarily for production agriculture or | ||||||
3 | State or federal
agricultural programs, including individual | ||||||
4 | replacement parts for
the machinery and equipment, including | ||||||
5 | machinery and equipment
purchased
for lease,
and including | ||||||
6 | implements of husbandry defined in Section 1-130 of
the | ||||||
7 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
8 | chemical and
fertilizer spreaders, and nurse wagons required | ||||||
9 | to be registered
under Section 3-809 of the Illinois Vehicle | ||||||
10 | Code,
but excluding other motor
vehicles required to be
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11 | registered under the Illinois Vehicle Code.
Horticultural | ||||||
12 | polyhouses or hoop houses used for propagating, growing, or
| ||||||
13 | overwintering plants shall be considered farm machinery and | ||||||
14 | equipment under
this item (11).
Agricultural chemical tender | ||||||
15 | tanks and dry boxes shall include units sold
separately from a | ||||||
16 | motor vehicle required to be licensed and units sold mounted
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17 | on a motor vehicle required to be licensed if the selling price | ||||||
18 | of the tender
is separately stated.
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19 | Farm machinery and equipment shall include precision | ||||||
20 | farming equipment
that is
installed or purchased to be | ||||||
21 | installed on farm machinery and equipment
including, but not | ||||||
22 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
23 | or spreaders.
Precision farming equipment includes, but is not | ||||||
24 | limited to, soil testing
sensors, computers, monitors, | ||||||
25 | software, global positioning
and mapping systems, and other | ||||||
26 | such equipment.
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1 | Farm machinery and equipment also includes computers, | ||||||
2 | sensors, software, and
related equipment used primarily in the
| ||||||
3 | computer-assisted operation of production agriculture | ||||||
4 | facilities, equipment,
and
activities such as, but not limited | ||||||
5 | to,
the collection, monitoring, and correlation of
animal and | ||||||
6 | crop data for the purpose of
formulating animal diets and | ||||||
7 | agricultural chemicals. This item (11) is exempt
from the | ||||||
8 | provisions of
Section 3-90.
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9 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
10 | to or used by an air common
carrier, certified by the carrier | ||||||
11 | to be used for consumption, shipment, or
storage in the | ||||||
12 | conduct of its business as an air common carrier, for a
flight | ||||||
13 | destined for or returning from a location or locations
outside | ||||||
14 | the United States without regard to previous or subsequent | ||||||
15 | domestic
stopovers.
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16 | Beginning July 1, 2013, fuel and petroleum products sold | ||||||
17 | to or used by an air carrier, certified by the carrier to be | ||||||
18 | used for consumption, shipment, or storage in the conduct of | ||||||
19 | its business as an air common carrier, for a flight that (i) is | ||||||
20 | engaged in foreign trade or is engaged in trade between the | ||||||
21 | United States and any of its possessions and (ii) transports | ||||||
22 | at least one individual or package for hire from the city of | ||||||
23 | origination to the city of final destination on the same | ||||||
24 | aircraft, without regard to a change in the flight number of | ||||||
25 | that aircraft. | ||||||
26 | (13) Proceeds of mandatory service charges separately
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1 | stated on customers' bills for the purchase and consumption of | ||||||
2 | food and
beverages purchased at retail from a retailer, to the | ||||||
3 | extent that the proceeds
of the service charge are in fact | ||||||
4 | turned over as tips or as a substitute
for tips to the | ||||||
5 | employees who participate directly in preparing, serving,
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6 | hosting or cleaning up the food or beverage function with | ||||||
7 | respect to which
the service charge is imposed.
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8 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
9 | and production
equipment,
including (i) rigs and parts of | ||||||
10 | rigs, rotary
rigs, cable tool rigs, and workover rigs, (ii) | ||||||
11 | pipe and tubular goods,
including casing and drill strings, | ||||||
12 | (iii) pumps and pump-jack units, (iv)
storage tanks and flow | ||||||
13 | lines, (v) any individual replacement part for oil
field | ||||||
14 | exploration, drilling, and production equipment, and (vi) | ||||||
15 | machinery and
equipment purchased
for lease; but excluding | ||||||
16 | motor vehicles required to be registered under the
Illinois | ||||||
17 | Vehicle Code.
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18 | (15) Photoprocessing machinery and equipment, including | ||||||
19 | repair and
replacement parts, both new and used, including | ||||||
20 | that
manufactured on special order, certified by the purchaser | ||||||
21 | to be used
primarily for photoprocessing, and including
| ||||||
22 | photoprocessing machinery and equipment purchased for lease.
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23 | (16) Until July 1, 2028, coal and aggregate exploration, | ||||||
24 | mining, off-highway hauling,
processing, maintenance, and | ||||||
25 | reclamation equipment,
including replacement parts and | ||||||
26 | equipment, and
including equipment purchased for lease, but |
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| |||||||
1 | excluding motor
vehicles required to be registered under the | ||||||
2 | Illinois Vehicle Code. The changes made to this Section by | ||||||
3 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
4 | for credit or refund is allowed on or after August 16, 2013 | ||||||
5 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
6 | during the period beginning July 1, 2003 and ending on August | ||||||
7 | 16, 2013 (the effective date of Public Act 98-456).
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8 | (17) Until July 1, 2003, distillation machinery and | ||||||
9 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
10 | retailer, certified by the user to be used
only for the | ||||||
11 | production of ethyl alcohol that will be used for consumption
| ||||||
12 | as motor fuel or as a component of motor fuel for the personal | ||||||
13 | use of the
user, and not subject to sale or resale.
| ||||||
14 | (18) Manufacturing and assembling machinery and equipment | ||||||
15 | used
primarily in the process of manufacturing or assembling | ||||||
16 | tangible
personal property for wholesale or retail sale or | ||||||
17 | lease, whether that sale
or lease is made directly by the | ||||||
18 | manufacturer or by some other person,
whether the materials | ||||||
19 | used in the process are
owned by the manufacturer or some other | ||||||
20 | person, or whether that sale or
lease is made apart from or as | ||||||
21 | an incident to the seller's engaging in
the service occupation | ||||||
22 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
23 | other similar items of no commercial value on
special order | ||||||
24 | for a particular purchaser. The exemption provided by this | ||||||
25 | paragraph (18) includes production related tangible personal | ||||||
26 | property, as defined in Section 3-50, purchased on or after |
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1 | July 1, 2019. The exemption provided by this paragraph (18) | ||||||
2 | does not include machinery and equipment used in (i) the | ||||||
3 | generation of electricity for wholesale or retail sale; (ii) | ||||||
4 | the generation or treatment of natural or artificial gas for | ||||||
5 | wholesale or retail sale that is delivered to customers | ||||||
6 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
7 | water for wholesale or retail sale that is delivered to | ||||||
8 | customers through pipes, pipelines, or mains. The provisions | ||||||
9 | of Public Act 98-583 are declaratory of existing law as to the | ||||||
10 | meaning and scope of this exemption. Beginning on July 1, | ||||||
11 | 2017, the exemption provided by this paragraph (18) includes, | ||||||
12 | but is not limited to, graphic arts machinery and equipment, | ||||||
13 | as defined in paragraph (6) of this Section.
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14 | (19) Personal property delivered to a purchaser or | ||||||
15 | purchaser's donee
inside Illinois when the purchase order for | ||||||
16 | that personal property was
received by a florist located | ||||||
17 | outside Illinois who has a florist located
inside Illinois | ||||||
18 | deliver the personal property.
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19 | (20) Semen used for artificial insemination of livestock | ||||||
20 | for direct
agricultural production.
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21 | (21) Horses, or interests in horses, registered with and | ||||||
22 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
23 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
24 | Horse Association, United States
Trotting Association, or | ||||||
25 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
26 | racing for prizes. This item (21) is exempt from the |
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1 | provisions of Section 3-90, and the exemption provided for | ||||||
2 | under this item (21) applies for all periods beginning May 30, | ||||||
3 | 1995, but no claim for credit or refund is allowed on or after | ||||||
4 | January 1, 2008
for such taxes paid during the period | ||||||
5 | beginning May 30, 2000 and ending on January 1, 2008.
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6 | (22) Computers and communications equipment utilized for | ||||||
7 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
8 | analysis, or treatment of hospital patients purchased by a | ||||||
9 | lessor who leases
the
equipment, under a lease of one year or | ||||||
10 | longer executed or in effect at the
time the lessor would | ||||||
11 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
12 | hospital
that has been issued an active tax exemption | ||||||
13 | identification number by
the
Department under Section 1g of | ||||||
14 | the Retailers' Occupation Tax Act. If the
equipment is leased | ||||||
15 | in a manner that does not qualify for
this exemption or is used | ||||||
16 | in any other non-exempt manner, the lessor
shall be liable for | ||||||
17 | the
tax imposed under this Act or the Service Use Tax Act, as | ||||||
18 | the case may
be, based on the fair market value of the property | ||||||
19 | at the time the
non-qualifying use occurs. No lessor shall | ||||||
20 | collect or attempt to collect an
amount (however
designated) | ||||||
21 | that purports to reimburse that lessor for the tax imposed by | ||||||
22 | this
Act or the Service Use Tax Act, as the case may be, if the | ||||||
23 | tax has not been
paid by the lessor. If a lessor improperly | ||||||
24 | collects any such amount from the
lessee, the lessee shall | ||||||
25 | have a legal right to claim a refund of that amount
from the | ||||||
26 | lessor. If, however, that amount is not refunded to the lessee |
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1 | for
any reason, the lessor is liable to pay that amount to the | ||||||
2 | Department.
| ||||||
3 | (23) Personal property purchased by a lessor who leases | ||||||
4 | the
property, under
a
lease of
one year or longer executed or | ||||||
5 | in effect at the time
the lessor would otherwise be subject to | ||||||
6 | the tax imposed by this Act,
to a governmental body
that has | ||||||
7 | been issued an active sales tax exemption identification | ||||||
8 | number by the
Department under Section 1g of the Retailers' | ||||||
9 | Occupation Tax Act.
If the
property is leased in a manner that | ||||||
10 | does not qualify for
this exemption
or used in any other | ||||||
11 | non-exempt manner, the lessor shall be liable for the
tax | ||||||
12 | imposed under this Act or the Service Use Tax Act, as the case | ||||||
13 | may
be, based on the fair market value of the property at the | ||||||
14 | time the
non-qualifying use occurs. No lessor shall collect or | ||||||
15 | attempt to collect an
amount (however
designated) that | ||||||
16 | purports to reimburse that lessor for the tax imposed by this
| ||||||
17 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
18 | has not been
paid by the lessor. If a lessor improperly | ||||||
19 | collects any such amount from the
lessee, the lessee shall | ||||||
20 | have a legal right to claim a refund of that amount
from the | ||||||
21 | lessor. If, however, that amount is not refunded to the lessee | ||||||
22 | for
any reason, the lessor is liable to pay that amount to the | ||||||
23 | Department.
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24 | (24) Beginning with taxable years ending on or after | ||||||
25 | December
31, 1995
and
ending with taxable years ending on or | ||||||
26 | before December 31, 2004,
personal property that is
donated |
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1 | for disaster relief to be used in a State or federally declared
| ||||||
2 | disaster area in Illinois or bordering Illinois by a | ||||||
3 | manufacturer or retailer
that is registered in this State to a | ||||||
4 | corporation, society, association,
foundation, or institution | ||||||
5 | that has been issued a sales tax exemption
identification | ||||||
6 | number by the Department that assists victims of the disaster
| ||||||
7 | who reside within the declared disaster area.
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8 | (25) Beginning with taxable years ending on or after | ||||||
9 | December
31, 1995 and
ending with taxable years ending on or | ||||||
10 | before December 31, 2004, personal
property that is used in | ||||||
11 | the performance of infrastructure repairs in this
State, | ||||||
12 | including but not limited to municipal roads and streets, | ||||||
13 | access roads,
bridges, sidewalks, waste disposal systems, | ||||||
14 | water and sewer line extensions,
water distribution and | ||||||
15 | purification facilities, storm water drainage and
retention | ||||||
16 | facilities, and sewage treatment facilities, resulting from a | ||||||
17 | State
or federally declared disaster in Illinois or bordering | ||||||
18 | Illinois when such
repairs are initiated on facilities located | ||||||
19 | in the declared disaster area
within 6 months after the | ||||||
20 | disaster.
| ||||||
21 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
22 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
23 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
24 | provisions
of
Section 3-90.
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25 | (27) A motor vehicle, as that term is defined in Section | ||||||
26 | 1-146
of the
Illinois
Vehicle Code, that is donated to a |
| |||||||
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1 | corporation, limited liability company,
society, association, | ||||||
2 | foundation, or institution that is determined by the
| ||||||
3 | Department to be organized and operated exclusively for | ||||||
4 | educational purposes.
For purposes of this exemption, "a | ||||||
5 | corporation, limited liability company,
society, association, | ||||||
6 | foundation, or institution organized and operated
exclusively | ||||||
7 | for educational purposes" means all tax-supported public | ||||||
8 | schools,
private schools that offer systematic instruction in | ||||||
9 | useful branches of
learning by methods common to public | ||||||
10 | schools and that compare favorably in
their scope and | ||||||
11 | intensity with the course of study presented in tax-supported
| ||||||
12 | schools, and vocational or technical schools or institutes | ||||||
13 | organized and
operated exclusively to provide a course of | ||||||
14 | study of not less than 6 weeks
duration and designed to prepare | ||||||
15 | individuals to follow a trade or to pursue a
manual, | ||||||
16 | technical, mechanical, industrial, business, or commercial
| ||||||
17 | occupation.
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18 | (28) Beginning January 1, 2000, personal property, | ||||||
19 | including
food,
purchased through fundraising
events for the | ||||||
20 | benefit of
a public or private elementary or
secondary school, | ||||||
21 | a group of those schools, or one or more school
districts if | ||||||
22 | the events are
sponsored by an entity recognized by the school | ||||||
23 | district that consists
primarily of volunteers and includes
| ||||||
24 | parents and teachers of the school children. This paragraph | ||||||
25 | does not apply
to fundraising
events (i) for the benefit of | ||||||
26 | private home instruction or (ii)
for which the fundraising |
| |||||||
| |||||||
1 | entity purchases the personal property sold at
the events from | ||||||
2 | another individual or entity that sold the property for the
| ||||||
3 | purpose of resale by the fundraising entity and that
profits | ||||||
4 | from the sale to the
fundraising entity. This paragraph is | ||||||
5 | exempt
from the provisions
of Section 3-90.
| ||||||
6 | (29) Beginning January 1, 2000 and through December 31, | ||||||
7 | 2001, new or
used automatic vending
machines that prepare and | ||||||
8 | serve hot food and beverages, including coffee, soup,
and
| ||||||
9 | other items, and replacement parts for these machines.
| ||||||
10 | Beginning January 1,
2002 and through June 30, 2003, machines | ||||||
11 | and parts for machines used in
commercial, coin-operated | ||||||
12 | amusement and vending business if a use or occupation
tax is | ||||||
13 | paid on the gross receipts derived from the use of the | ||||||
14 | commercial,
coin-operated amusement and vending machines.
This
| ||||||
15 | paragraph
is exempt from the provisions of Section 3-90.
| ||||||
16 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
17 | food for human consumption that is to be consumed off the | ||||||
18 | premises
where it is sold (other than alcoholic beverages, | ||||||
19 | soft drinks, and food that
has been prepared for immediate | ||||||
20 | consumption) and prescription and
nonprescription medicines, | ||||||
21 | drugs, medical appliances, and insulin, urine
testing | ||||||
22 | materials, syringes, and needles used by diabetics, for human | ||||||
23 | use, when
purchased for use by a person receiving medical | ||||||
24 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
25 | resides in a licensed long-term care facility,
as defined in | ||||||
26 | the Nursing Home Care Act, or in a licensed facility as defined |
| |||||||
| |||||||
1 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
2 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
3 | (31) Beginning on August 2, 2001 (the effective date of | ||||||
4 | Public Act 92-227),
computers and communications equipment
| ||||||
5 | utilized for any hospital purpose and equipment used in the | ||||||
6 | diagnosis,
analysis, or treatment of hospital patients | ||||||
7 | purchased by a lessor who leases
the equipment, under a lease | ||||||
8 | of one year or longer executed or in effect at the
time the | ||||||
9 | lessor would otherwise be subject to the tax imposed by this | ||||||
10 | Act, to a
hospital that has been issued an active tax exemption | ||||||
11 | identification number by
the Department under Section 1g of | ||||||
12 | the Retailers' Occupation Tax Act. If the
equipment is leased | ||||||
13 | in a manner that does not qualify for this exemption or is
used | ||||||
14 | in any other nonexempt manner, the lessor shall be liable for | ||||||
15 | the tax
imposed under this Act or the Service Use Tax Act, as | ||||||
16 | the case may be, based on
the fair market value of the property | ||||||
17 | at the time the nonqualifying use
occurs. No lessor shall | ||||||
18 | collect or attempt to collect an amount (however
designated) | ||||||
19 | that purports to reimburse that lessor for the tax imposed by | ||||||
20 | this
Act or the Service Use Tax Act, as the case may be, if the | ||||||
21 | tax has not been
paid by the lessor. If a lessor improperly | ||||||
22 | collects any such amount from the
lessee, the lessee shall | ||||||
23 | have a legal right to claim a refund of that amount
from the | ||||||
24 | lessor. If, however, that amount is not refunded to the lessee | ||||||
25 | for
any reason, the lessor is liable to pay that amount to the | ||||||
26 | Department.
This paragraph is exempt from the provisions of |
| |||||||
| |||||||
1 | Section 3-90.
| ||||||
2 | (32) Beginning on August 2, 2001 (the effective date of | ||||||
3 | Public Act 92-227),
personal property purchased by a lessor | ||||||
4 | who leases the property,
under a lease of one year or longer | ||||||
5 | executed or in effect at the time the
lessor would otherwise be | ||||||
6 | subject to the tax imposed by this Act, to a
governmental body | ||||||
7 | that has been issued an active sales tax exemption
| ||||||
8 | identification number by the Department under Section 1g of | ||||||
9 | the Retailers'
Occupation Tax Act. If the property is leased | ||||||
10 | in a manner that does not
qualify for this exemption or used in | ||||||
11 | any other nonexempt manner, the lessor
shall be liable for the | ||||||
12 | tax imposed under this Act or the Service Use Tax Act,
as the | ||||||
13 | case may be, based on the fair market value of the property at | ||||||
14 | the time
the nonqualifying use occurs. No lessor shall collect | ||||||
15 | or attempt to collect
an amount (however designated) that | ||||||
16 | purports to reimburse that lessor for the
tax imposed by this | ||||||
17 | Act or the Service Use Tax Act, as the case may be, if the
tax | ||||||
18 | has not been paid by the lessor. If a lessor improperly | ||||||
19 | collects any such
amount from the lessee, the lessee shall | ||||||
20 | have a legal right to claim a refund
of that amount from the | ||||||
21 | lessor. If, however, that amount is not refunded to
the lessee | ||||||
22 | for any reason, the lessor is liable to pay that amount to the
| ||||||
23 | Department. This paragraph is exempt from the provisions of | ||||||
24 | Section 3-90.
| ||||||
25 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
26 | the use in this State of motor vehicles of
the second division |
| |||||||
| |||||||
1 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
2 | are subject to the commercial distribution fee imposed under | ||||||
3 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on | ||||||
4 | July 1, 2004 and through June 30, 2005, the use in this State | ||||||
5 | of motor vehicles of the second division: (i) with a gross | ||||||
6 | vehicle weight rating in excess of 8,000 pounds; (ii) that are | ||||||
7 | subject to the commercial distribution fee imposed under | ||||||
8 | Section 3-815.1 of the Illinois Vehicle Code; and (iii) that | ||||||
9 | are primarily used for commercial purposes. Through June 30, | ||||||
10 | 2005, this exemption applies to repair and
replacement parts | ||||||
11 | added after the initial purchase of such a motor vehicle if
| ||||||
12 | that motor
vehicle is used in a manner that would qualify for | ||||||
13 | the rolling stock exemption
otherwise provided for in this | ||||||
14 | Act. For purposes of this paragraph, the term "used for | ||||||
15 | commercial purposes" means the transportation of persons or | ||||||
16 | property in furtherance of any commercial or industrial | ||||||
17 | enterprise, whether for-hire or not.
| ||||||
18 | (34) Beginning January 1, 2008, tangible personal property | ||||||
19 | used in the construction or maintenance of a community water | ||||||
20 | supply, as defined under Section 3.145 of the Environmental | ||||||
21 | Protection Act, that is operated by a not-for-profit | ||||||
22 | corporation that holds a valid water supply permit issued | ||||||
23 | under Title IV of the Environmental Protection Act. This | ||||||
24 | paragraph is exempt from the provisions of Section 3-90. | ||||||
25 | (35) Beginning January 1, 2010 and continuing through | ||||||
26 | December 31, 2024, materials, parts, equipment, components, |
| |||||||
| |||||||
1 | and furnishings incorporated into or upon an aircraft as part | ||||||
2 | of the modification, refurbishment, completion, replacement, | ||||||
3 | repair, or maintenance of the aircraft. This exemption | ||||||
4 | includes consumable supplies used in the modification, | ||||||
5 | refurbishment, completion, replacement, repair, and | ||||||
6 | maintenance of aircraft, but excludes any materials, parts, | ||||||
7 | equipment, components, and consumable supplies used in the | ||||||
8 | modification, replacement, repair, and maintenance of aircraft | ||||||
9 | engines or power plants, whether such engines or power plants | ||||||
10 | are installed or uninstalled upon any such aircraft. | ||||||
11 | "Consumable supplies" include, but are not limited to, | ||||||
12 | adhesive, tape, sandpaper, general purpose lubricants, | ||||||
13 | cleaning solution, latex gloves, and protective films. This | ||||||
14 | exemption applies only to the use of qualifying tangible | ||||||
15 | personal property by persons who modify, refurbish, complete, | ||||||
16 | repair, replace, or maintain aircraft and who (i) hold an Air | ||||||
17 | Agency Certificate and are empowered to operate an approved | ||||||
18 | repair station by the Federal Aviation Administration, (ii) | ||||||
19 | have a Class IV Rating, and (iii) conduct operations in | ||||||
20 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
21 | The exemption does not include aircraft operated by a | ||||||
22 | commercial air carrier providing scheduled passenger air | ||||||
23 | service pursuant to authority issued under Part 121 or Part | ||||||
24 | 129 of the Federal Aviation Regulations. The changes made to | ||||||
25 | this paragraph (35) by Public Act 98-534 are declarative of | ||||||
26 | existing law. It is the intent of the General Assembly that the |
| |||||||
| |||||||
1 | exemption under this paragraph (35) applies continuously from | ||||||
2 | January 1, 2010 through December 31, 2024; however, no claim | ||||||
3 | for credit or refund is allowed for taxes paid as a result of | ||||||
4 | the disallowance of this exemption on or after January 1, 2015 | ||||||
5 | and prior to February 5, 2020 ( the effective date of Public Act | ||||||
6 | 101-629) this amendatory Act of the 101st General Assembly . | ||||||
7 | (36) Tangible personal property purchased by a | ||||||
8 | public-facilities corporation, as described in Section | ||||||
9 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
10 | constructing or furnishing a municipal convention hall, but | ||||||
11 | only if the legal title to the municipal convention hall is | ||||||
12 | transferred to the municipality without any further | ||||||
13 | consideration by or on behalf of the municipality at the time | ||||||
14 | of the completion of the municipal convention hall or upon the | ||||||
15 | retirement or redemption of any bonds or other debt | ||||||
16 | instruments issued by the public-facilities corporation in | ||||||
17 | connection with the development of the municipal convention | ||||||
18 | hall. This exemption includes existing public-facilities | ||||||
19 | corporations as provided in Section 11-65-25 of the Illinois | ||||||
20 | Municipal Code. This paragraph is exempt from the provisions | ||||||
21 | of Section 3-90. | ||||||
22 | (37) Beginning January 1, 2017 and through December 31, | ||||||
23 | 2026, menstrual pads, tampons, and menstrual cups. | ||||||
24 | (38) Merchandise that is subject to the Rental Purchase | ||||||
25 | Agreement Occupation and Use Tax. The purchaser must certify | ||||||
26 | that the item is purchased to be rented subject to a rental |
| |||||||
| |||||||
1 | purchase agreement, as defined in the Rental Purchase | ||||||
2 | Agreement Act, and provide proof of registration under the | ||||||
3 | Rental Purchase Agreement Occupation and Use Tax Act. This | ||||||
4 | paragraph is exempt from the provisions of Section 3-90. | ||||||
5 | (39) Tangible personal property purchased by a purchaser | ||||||
6 | who is exempt from the tax imposed by this Act by operation of | ||||||
7 | federal law. This paragraph is exempt from the provisions of | ||||||
8 | Section 3-90. | ||||||
9 | (40) Qualified tangible personal property used in the | ||||||
10 | construction or operation of a data center that has been | ||||||
11 | granted a certificate of exemption by the Department of | ||||||
12 | Commerce and Economic Opportunity, whether that tangible | ||||||
13 | personal property is purchased by the owner, operator, or | ||||||
14 | tenant of the data center or by a contractor or subcontractor | ||||||
15 | of the owner, operator, or tenant. Data centers that would | ||||||
16 | have qualified for a certificate of exemption prior to January | ||||||
17 | 1, 2020 had Public Act 101-31 been in effect may apply for and | ||||||
18 | obtain an exemption for subsequent purchases of computer | ||||||
19 | equipment or enabling software purchased or leased to upgrade, | ||||||
20 | supplement, or replace computer equipment or enabling software | ||||||
21 | purchased or leased in the original investment that would have | ||||||
22 | qualified. | ||||||
23 | The Department of Commerce and Economic Opportunity shall | ||||||
24 | grant a certificate of exemption under this item (40) to | ||||||
25 | qualified data centers as defined by Section 605-1025 of the | ||||||
26 | Department of Commerce and Economic Opportunity Law of the
|
| |||||||
| |||||||
1 | Civil Administrative Code of Illinois. | ||||||
2 | For the purposes of this item (40): | ||||||
3 | "Data center" means a building or a series of | ||||||
4 | buildings rehabilitated or constructed to house working | ||||||
5 | servers in one physical location or multiple sites within | ||||||
6 | the State of Illinois. | ||||||
7 | "Qualified tangible personal property" means: | ||||||
8 | electrical systems and equipment; climate control and | ||||||
9 | chilling equipment and systems; mechanical systems and | ||||||
10 | equipment; monitoring and secure systems; emergency | ||||||
11 | generators; hardware; computers; servers; data storage | ||||||
12 | devices; network connectivity equipment; racks; cabinets; | ||||||
13 | telecommunications cabling infrastructure; raised floor | ||||||
14 | systems; peripheral components or systems; software; | ||||||
15 | mechanical, electrical, or plumbing systems; battery | ||||||
16 | systems; cooling systems and towers; temperature control | ||||||
17 | systems; other cabling; and other data center | ||||||
18 | infrastructure equipment and systems necessary to operate | ||||||
19 | qualified tangible personal property, including fixtures; | ||||||
20 | and component parts of any of the foregoing, including | ||||||
21 | installation, maintenance, repair, refurbishment, and | ||||||
22 | replacement of qualified tangible personal property to | ||||||
23 | generate, transform, transmit, distribute, or manage | ||||||
24 | electricity necessary to operate qualified tangible | ||||||
25 | personal property; and all other tangible personal | ||||||
26 | property that is essential to the operations of a computer |
| |||||||
| |||||||
1 | data center. The term "qualified tangible personal | ||||||
2 | property" also includes building materials physically | ||||||
3 | incorporated in to the qualifying data center. To document | ||||||
4 | the exemption allowed under this Section, the retailer | ||||||
5 | must obtain from the purchaser a copy of the certificate | ||||||
6 | of eligibility issued by the Department of Commerce and | ||||||
7 | Economic Opportunity. | ||||||
8 | This item (40) is exempt from the provisions of Section | ||||||
9 | 3-90. | ||||||
10 | (41) Beginning July 1, 2022, breast pumps, breast pump | ||||||
11 | collection and storage supplies, and breast pump kits. This | ||||||
12 | item (41) is exempt from the provisions of Section 3-90. As | ||||||
13 | used in this item (41): | ||||||
14 | "Breast pump" means an electrically controlled or | ||||||
15 | manually controlled pump device designed or marketed to be | ||||||
16 | used to express milk from a human breast during lactation, | ||||||
17 | including the pump device and any battery, AC adapter, or | ||||||
18 | other power supply unit that is used to power the pump | ||||||
19 | device and is packaged and sold with the pump device at the | ||||||
20 | time of sale. | ||||||
21 | "Breast pump collection and storage supplies" means | ||||||
22 | items of tangible personal property designed or marketed | ||||||
23 | to be used in conjunction with a breast pump to collect | ||||||
24 | milk expressed from a human breast and to store collected | ||||||
25 | milk until it is ready for consumption. | ||||||
26 | "Breast pump collection and storage supplies" |
| |||||||
| |||||||
1 | includes, but is not limited to: breast shields and breast | ||||||
2 | shield connectors; breast pump tubes and tubing adapters; | ||||||
3 | breast pump valves and membranes; backflow protectors and | ||||||
4 | backflow protector adaptors; bottles and bottle caps | ||||||
5 | specific to the operation of the breast pump; and breast | ||||||
6 | milk storage bags. | ||||||
7 | "Breast pump collection and storage supplies" does not | ||||||
8 | include: (1) bottles and bottle caps not specific to the | ||||||
9 | operation of the breast pump; (2) breast pump travel bags | ||||||
10 | and other similar carrying accessories, including ice | ||||||
11 | packs, labels, and other similar products; (3) breast pump | ||||||
12 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
13 | shells, and other similar products; and (5) creams, | ||||||
14 | ointments, and other similar products that relieve | ||||||
15 | breastfeeding-related symptoms or conditions of the | ||||||
16 | breasts or nipples, unless sold as part of a breast pump | ||||||
17 | kit that is pre-packaged by the breast pump manufacturer | ||||||
18 | or distributor. | ||||||
19 | "Breast pump kit" means a kit that: (1) contains no | ||||||
20 | more than a breast pump, breast pump collection and | ||||||
21 | storage supplies, a rechargeable battery for operating the | ||||||
22 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
23 | packs, and a breast pump carrying case; and (2) is | ||||||
24 | pre-packaged as a breast pump kit by the breast pump | ||||||
25 | manufacturer or distributor. | ||||||
26 | (42) (41) Tangible personal property sold by or on behalf |
| |||||||
| |||||||
1 | of the State Treasurer pursuant to the Revised Uniform | ||||||
2 | Unclaimed Property Act. This item (42) (41) is exempt from the | ||||||
3 | provisions of Section 3-90. | ||||||
4 | (43) Qualified tangible personal property used in the | ||||||
5 | construction or operation of a mega project for which a | ||||||
6 | certificate has been issued by the Department under Division | ||||||
7 | 22 of Article 10 of the Property Tax Code, whether that | ||||||
8 | tangible personal property is purchased by the owner, | ||||||
9 | operator, or tenant of the mega project or by a contractor or | ||||||
10 | subcontractor of the owner, operator, or tenant. | ||||||
11 | As used in this item (43): | ||||||
12 | "Facility" means a building or series of buildings. | ||||||
13 | "Mega project" means a facility that is rehabilitated or | ||||||
14 | constructed as described in Division 22 of Article 10 of the | ||||||
15 | Property Tax Code. | ||||||
16 | "Qualified tangible personal property" means: electrical | ||||||
17 | systems and equipment; climate control and chilling equipment | ||||||
18 | and systems; mechanical systems and equipment; monitoring and | ||||||
19 | secure systems; emergency generators; hardware; computers; | ||||||
20 | servers; data storage devices; network connectivity equipment; | ||||||
21 | racks; cabinets; telecommunications cabling infrastructure; | ||||||
22 | raised floor systems; peripheral components or systems; | ||||||
23 | software; mechanical, electrical, or plumbing systems; battery | ||||||
24 | systems; cooling systems and towers; temperature control | ||||||
25 | systems; other cabling; and other data center infrastructure | ||||||
26 | equipment and systems necessary to operate qualified tangible |
| |||||||
| |||||||
1 | personal property, including fixtures; and component parts of | ||||||
2 | those items, including installation, maintenance, repair, | ||||||
3 | refurbishment, and replacement of qualified tangible personal | ||||||
4 | property to generate, transform, transmit, distribute, or | ||||||
5 | manage electricity necessary to operate qualified tangible | ||||||
6 | personal property; and all other tangible personal property | ||||||
7 | that is essential to the operations of a mega project. The term | ||||||
8 | "qualified tangible personal property" also includes building | ||||||
9 | materials to be incorporated into the mega project. To | ||||||
10 | document the exemption allowed under this Section, the | ||||||
11 | retailer, contractor or subcontractor or supplier must obtain | ||||||
12 | from the purchaser a copy of the certificate issued by the | ||||||
13 | Department of Revenue for the mega project as described and | ||||||
14 | defined in Division 22 of Article 10 of the Property Tax Code. | ||||||
15 | This item (43) is exempt from the provisions of Section | ||||||
16 | 3-90. | ||||||
17 | (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; | ||||||
18 | 101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff. | ||||||
19 | 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22; | ||||||
20 | 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026, | ||||||
21 | eff. 5-27-22; revised 8-1-22.)
| ||||||
22 | Section 10. The Service Use Tax Act is amended by changing | ||||||
23 | Section 3-5 as follows:
| ||||||
24 | (35 ILCS 110/3-5)
|
| |||||||
| |||||||
1 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
2 | personal property
is exempt from the tax imposed by this Act:
| ||||||
3 | (1) Personal property purchased from a corporation, | ||||||
4 | society,
association, foundation, institution, or | ||||||
5 | organization, other than a limited
liability company, that is | ||||||
6 | organized and operated as a not-for-profit service
enterprise | ||||||
7 | for the benefit of persons 65 years of age or older if the | ||||||
8 | personal
property was not purchased by the enterprise for the | ||||||
9 | purpose of resale by the
enterprise.
| ||||||
10 | (2) Personal property purchased by a non-profit Illinois | ||||||
11 | county fair
association for use in conducting, operating, or | ||||||
12 | promoting the county fair.
| ||||||
13 | (3) Personal property purchased by a not-for-profit arts
| ||||||
14 | or cultural
organization that establishes, by proof required | ||||||
15 | by the Department by rule,
that it has received an exemption | ||||||
16 | under Section 501(c)(3) of the Internal
Revenue Code and that | ||||||
17 | is organized and operated primarily for the
presentation
or | ||||||
18 | support of arts or cultural programming, activities, or | ||||||
19 | services. These
organizations include, but are not limited to, | ||||||
20 | music and dramatic arts
organizations such as symphony | ||||||
21 | orchestras and theatrical groups, arts and
cultural service | ||||||
22 | organizations, local arts councils, visual arts organizations,
| ||||||
23 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
24 | effective date of Public Act 92-35), however, an entity | ||||||
25 | otherwise eligible for this exemption shall not
make tax-free | ||||||
26 | purchases unless it has an active identification number issued |
| |||||||
| |||||||
1 | by
the Department.
| ||||||
2 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
3 | coinage issued
by the State of Illinois, the government of the | ||||||
4 | United States of America,
or the government of any foreign | ||||||
5 | country, and bullion.
| ||||||
6 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
7 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
8 | equipment, including
repair and
replacement parts, both new | ||||||
9 | and used, and including that manufactured on
special order or | ||||||
10 | purchased for lease, certified by the purchaser to be used
| ||||||
11 | primarily for graphic arts production.
Equipment includes | ||||||
12 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
13 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
14 | immediate
change upon a graphic arts product. Beginning on | ||||||
15 | July 1, 2017, graphic arts machinery and equipment is included | ||||||
16 | in the manufacturing and assembling machinery and equipment | ||||||
17 | exemption under Section 2 of this Act.
| ||||||
18 | (6) Personal property purchased from a teacher-sponsored | ||||||
19 | student
organization affiliated with an elementary or | ||||||
20 | secondary school located
in Illinois.
| ||||||
21 | (7) Farm machinery and equipment, both new and used, | ||||||
22 | including that
manufactured on special order, certified by the | ||||||
23 | purchaser to be used
primarily for production agriculture or | ||||||
24 | State or federal agricultural
programs, including individual | ||||||
25 | replacement parts for the machinery and
equipment, including | ||||||
26 | machinery and equipment purchased for lease,
and including |
| |||||||
| |||||||
1 | implements of husbandry defined in Section 1-130 of
the | ||||||
2 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
3 | chemical and
fertilizer spreaders, and nurse wagons required | ||||||
4 | to be registered
under Section 3-809 of the Illinois Vehicle | ||||||
5 | Code,
but
excluding other motor vehicles required to be | ||||||
6 | registered under the Illinois
Vehicle Code.
Horticultural | ||||||
7 | polyhouses or hoop houses used for propagating, growing, or
| ||||||
8 | overwintering plants shall be considered farm machinery and | ||||||
9 | equipment under
this item (7).
Agricultural chemical tender | ||||||
10 | tanks and dry boxes shall include units sold
separately from a | ||||||
11 | motor vehicle required to be licensed and units sold mounted
| ||||||
12 | on a motor vehicle required to be licensed if the selling price | ||||||
13 | of the tender
is separately stated.
| ||||||
14 | Farm machinery and equipment shall include precision | ||||||
15 | farming equipment
that is
installed or purchased to be | ||||||
16 | installed on farm machinery and equipment
including, but not | ||||||
17 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
18 | or spreaders.
Precision farming equipment includes, but is not | ||||||
19 | limited to,
soil testing sensors, computers, monitors, | ||||||
20 | software, global positioning
and mapping systems, and other | ||||||
21 | such equipment.
| ||||||
22 | Farm machinery and equipment also includes computers, | ||||||
23 | sensors, software, and
related equipment used primarily in the
| ||||||
24 | computer-assisted operation of production agriculture | ||||||
25 | facilities, equipment,
and activities such as, but
not limited | ||||||
26 | to,
the collection, monitoring, and correlation of
animal and |
| |||||||
| |||||||
1 | crop data for the purpose of
formulating animal diets and | ||||||
2 | agricultural chemicals. This item (7) is exempt
from the | ||||||
3 | provisions of
Section 3-75.
| ||||||
4 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
5 | to or used by an air common
carrier, certified by the carrier | ||||||
6 | to be used for consumption, shipment, or
storage in the | ||||||
7 | conduct of its business as an air common carrier, for a
flight | ||||||
8 | destined for or returning from a location or locations
outside | ||||||
9 | the United States without regard to previous or subsequent | ||||||
10 | domestic
stopovers.
| ||||||
11 | Beginning July 1, 2013, fuel and petroleum products sold | ||||||
12 | to or used by an air carrier, certified by the carrier to be | ||||||
13 | used for consumption, shipment, or storage in the conduct of | ||||||
14 | its business as an air common carrier, for a flight that (i) is | ||||||
15 | engaged in foreign trade or is engaged in trade between the | ||||||
16 | United States and any of its possessions and (ii) transports | ||||||
17 | at least one individual or package for hire from the city of | ||||||
18 | origination to the city of final destination on the same | ||||||
19 | aircraft, without regard to a change in the flight number of | ||||||
20 | that aircraft. | ||||||
21 | (9) Proceeds of mandatory service charges separately | ||||||
22 | stated on
customers' bills for the purchase and consumption of | ||||||
23 | food and beverages
acquired as an incident to the purchase of a | ||||||
24 | service from a serviceman, to
the extent that the proceeds of | ||||||
25 | the service charge are in fact
turned over as tips or as a | ||||||
26 | substitute for tips to the employees who
participate directly |
| |||||||
| |||||||
1 | in preparing, serving, hosting or cleaning up the
food or | ||||||
2 | beverage function with respect to which the service charge is | ||||||
3 | imposed.
| ||||||
4 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
5 | and production
equipment, including
(i) rigs and parts of | ||||||
6 | rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) | ||||||
7 | pipe and tubular goods, including casing and
drill strings, | ||||||
8 | (iii) pumps and pump-jack units, (iv) storage tanks and flow
| ||||||
9 | lines, (v) any individual replacement part for oil field | ||||||
10 | exploration,
drilling, and production equipment, and (vi) | ||||||
11 | machinery and equipment purchased
for lease; but
excluding | ||||||
12 | motor vehicles required to be registered under the Illinois
| ||||||
13 | Vehicle Code.
| ||||||
14 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
15 | and
equipment, including repair and replacement parts, both | ||||||
16 | new and
used, including that manufactured on special order, | ||||||
17 | certified by the
purchaser to be used primarily for | ||||||
18 | photoprocessing, and including
photoprocessing machinery and | ||||||
19 | equipment purchased for lease.
| ||||||
20 | (12) Until July 1, 2028, coal and aggregate exploration, | ||||||
21 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
22 | reclamation equipment, including
replacement parts and | ||||||
23 | equipment, and including
equipment purchased for lease, but | ||||||
24 | excluding motor vehicles required to be
registered under the | ||||||
25 | Illinois Vehicle Code. The changes made to this Section by | ||||||
26 | Public Act 97-767 apply on and after July 1, 2003, but no claim |
| |||||||
| |||||||
1 | for credit or refund is allowed on or after August 16, 2013 | ||||||
2 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
3 | during the period beginning July 1, 2003 and ending on August | ||||||
4 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
5 | (13) Semen used for artificial insemination of livestock | ||||||
6 | for direct
agricultural production.
| ||||||
7 | (14) Horses, or interests in horses, registered with and | ||||||
8 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
9 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
10 | Horse Association, United States
Trotting Association, or | ||||||
11 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
12 | racing for prizes. This item (14) is exempt from the | ||||||
13 | provisions of Section 3-75, and the exemption provided for | ||||||
14 | under this item (14) applies for all periods beginning May 30, | ||||||
15 | 1995, but no claim for credit or refund is allowed on or after | ||||||
16 | January 1, 2008 (the effective date of Public Act 95-88) for | ||||||
17 | such taxes paid during the period beginning May 30, 2000 and | ||||||
18 | ending on January 1, 2008 (the effective date of Public Act | ||||||
19 | 95-88).
| ||||||
20 | (15) Computers and communications equipment utilized for | ||||||
21 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
22 | analysis, or treatment of hospital patients purchased by a | ||||||
23 | lessor who leases
the
equipment, under a lease of one year or | ||||||
24 | longer executed or in effect at the
time
the lessor would | ||||||
25 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
26 | hospital
that has been issued an active tax exemption |
| |||||||
| |||||||
1 | identification number by the
Department under Section 1g of | ||||||
2 | the Retailers' Occupation Tax Act.
If the
equipment is leased | ||||||
3 | in a manner that does not qualify for
this exemption
or is used | ||||||
4 | in any other non-exempt manner,
the lessor shall be liable for | ||||||
5 | the
tax imposed under this Act or the Use Tax Act, as the case | ||||||
6 | may
be, based on the fair market value of the property at the | ||||||
7 | time the
non-qualifying use occurs. No lessor shall collect or | ||||||
8 | attempt to collect an
amount (however
designated) that | ||||||
9 | purports to reimburse that lessor for the tax imposed by this
| ||||||
10 | Act or the Use Tax Act, as the case may be, if the tax has not | ||||||
11 | been
paid by the lessor. If a lessor improperly collects any | ||||||
12 | such amount from the
lessee, the lessee shall have a legal | ||||||
13 | right to claim a refund of that amount
from the lessor. If, | ||||||
14 | however, that amount is not refunded to the lessee for
any | ||||||
15 | reason, the lessor is liable to pay that amount to the | ||||||
16 | Department.
| ||||||
17 | (16) Personal property purchased by a lessor who leases | ||||||
18 | the
property, under
a
lease of one year or longer executed or | ||||||
19 | in effect at the time
the lessor would otherwise be subject to | ||||||
20 | the tax imposed by this Act,
to a governmental body
that has | ||||||
21 | been issued an active tax exemption identification number by | ||||||
22 | the
Department under Section 1g of the Retailers' Occupation | ||||||
23 | Tax Act.
If the
property is leased in a manner that does not | ||||||
24 | qualify for
this exemption
or is used in any other non-exempt | ||||||
25 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
26 | this Act or the Use Tax Act, as the case may
be, based on the |
| |||||||
| |||||||
1 | fair market value of the property at the time the
| ||||||
2 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
3 | to collect an
amount (however
designated) that purports to | ||||||
4 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
5 | Use Tax Act, as the case may be, if the tax has not been
paid | ||||||
6 | by the lessor. If a lessor improperly collects any such amount | ||||||
7 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
8 | refund of that amount
from the lessor. If, however, that | ||||||
9 | amount is not refunded to the lessee for
any reason, the lessor | ||||||
10 | is liable to pay that amount to the Department.
| ||||||
11 | (17) Beginning with taxable years ending on or after | ||||||
12 | December
31,
1995
and
ending with taxable years ending on or | ||||||
13 | before December 31, 2004,
personal property that is
donated | ||||||
14 | for disaster relief to be used in a State or federally declared
| ||||||
15 | disaster area in Illinois or bordering Illinois by a | ||||||
16 | manufacturer or retailer
that is registered in this State to a | ||||||
17 | corporation, society, association,
foundation, or institution | ||||||
18 | that has been issued a sales tax exemption
identification | ||||||
19 | number by the Department that assists victims of the disaster
| ||||||
20 | who reside within the declared disaster area.
| ||||||
21 | (18) Beginning with taxable years ending on or after | ||||||
22 | December
31, 1995 and
ending with taxable years ending on or | ||||||
23 | before December 31, 2004, personal
property that is used in | ||||||
24 | the performance of infrastructure repairs in this
State, | ||||||
25 | including but not limited to municipal roads and streets, | ||||||
26 | access roads,
bridges, sidewalks, waste disposal systems, |
| |||||||
| |||||||
1 | water and sewer line extensions,
water distribution and | ||||||
2 | purification facilities, storm water drainage and
retention | ||||||
3 | facilities, and sewage treatment facilities, resulting from a | ||||||
4 | State
or federally declared disaster in Illinois or bordering | ||||||
5 | Illinois when such
repairs are initiated on facilities located | ||||||
6 | in the declared disaster area
within 6 months after the | ||||||
7 | disaster.
| ||||||
8 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
9 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
10 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
11 | provisions
of
Section 3-75.
| ||||||
12 | (20) A motor vehicle, as that term is defined in Section | ||||||
13 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
14 | corporation, limited liability
company, society, association, | ||||||
15 | foundation, or institution that is determined by
the | ||||||
16 | Department to be organized and operated exclusively for | ||||||
17 | educational
purposes. For purposes of this exemption, "a | ||||||
18 | corporation, limited liability
company, society, association, | ||||||
19 | foundation, or institution organized and
operated
exclusively | ||||||
20 | for educational purposes" means all tax-supported public | ||||||
21 | schools,
private schools that offer systematic instruction in | ||||||
22 | useful branches of
learning by methods common to public | ||||||
23 | schools and that compare favorably in
their scope and | ||||||
24 | intensity with the course of study presented in tax-supported
| ||||||
25 | schools, and vocational or technical schools or institutes | ||||||
26 | organized and
operated exclusively to provide a course of |
| |||||||
| |||||||
1 | study of not less than 6 weeks
duration and designed to prepare | ||||||
2 | individuals to follow a trade or to pursue a
manual, | ||||||
3 | technical, mechanical, industrial, business, or commercial
| ||||||
4 | occupation.
| ||||||
5 | (21) Beginning January 1, 2000, personal property, | ||||||
6 | including
food,
purchased through fundraising
events for the | ||||||
7 | benefit of
a public or private elementary or
secondary school, | ||||||
8 | a group of those schools, or one or more school
districts if | ||||||
9 | the events are
sponsored by an entity recognized by the school | ||||||
10 | district that consists
primarily of volunteers and includes
| ||||||
11 | parents and teachers of the school children. This paragraph | ||||||
12 | does not apply
to fundraising
events (i) for the benefit of | ||||||
13 | private home instruction or (ii)
for which the fundraising | ||||||
14 | entity purchases the personal property sold at
the events from | ||||||
15 | another individual or entity that sold the property for the
| ||||||
16 | purpose of resale by the fundraising entity and that
profits | ||||||
17 | from the sale to the
fundraising entity. This paragraph is | ||||||
18 | exempt
from the provisions
of Section 3-75.
| ||||||
19 | (22) Beginning January 1, 2000
and through December 31, | ||||||
20 | 2001, new or used automatic vending
machines that prepare and | ||||||
21 | serve hot food and beverages, including coffee, soup,
and
| ||||||
22 | other items, and replacement parts for these machines.
| ||||||
23 | Beginning January 1,
2002 and through June 30, 2003, machines | ||||||
24 | and parts for machines used in
commercial, coin-operated
| ||||||
25 | amusement
and vending business if a use or occupation tax is | ||||||
26 | paid on the gross receipts
derived from
the use of the |
| |||||||
| |||||||
1 | commercial, coin-operated amusement and vending machines.
This
| ||||||
2 | paragraph
is exempt from the provisions of Section 3-75.
| ||||||
3 | (23) Beginning August 23, 2001 and through June 30, 2016, | ||||||
4 | food for human consumption that is to be consumed off the
| ||||||
5 | premises
where it is sold (other than alcoholic beverages, | ||||||
6 | soft drinks, and food that
has been prepared for immediate | ||||||
7 | consumption) and prescription and
nonprescription medicines, | ||||||
8 | drugs, medical appliances, and insulin, urine
testing | ||||||
9 | materials, syringes, and needles used by diabetics, for human | ||||||
10 | use, when
purchased for use by a person receiving medical | ||||||
11 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
12 | resides in a licensed long-term care facility,
as defined in | ||||||
13 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
14 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
15 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
16 | (24) Beginning on August 2, 2001 (the effective date of | ||||||
17 | Public Act 92-227), computers and communications equipment
| ||||||
18 | utilized for any hospital purpose and equipment used in the | ||||||
19 | diagnosis,
analysis, or treatment of hospital patients | ||||||
20 | purchased by a lessor who leases
the equipment, under a lease | ||||||
21 | of one year or longer executed or in effect at the
time the | ||||||
22 | lessor would otherwise be subject to the tax imposed by this | ||||||
23 | Act, to a
hospital that has been issued an active tax exemption | ||||||
24 | identification number by
the Department under Section 1g of | ||||||
25 | the Retailers' Occupation Tax Act. If the
equipment is leased | ||||||
26 | in a manner that does not qualify for this exemption or is
used |
| |||||||
| |||||||
1 | in any other nonexempt manner, the lessor shall be liable for | ||||||
2 | the
tax imposed under this Act or the Use Tax Act, as the case | ||||||
3 | may be, based on the
fair market value of the property at the | ||||||
4 | time the nonqualifying use occurs.
No lessor shall collect or | ||||||
5 | attempt to collect an amount (however
designated) that | ||||||
6 | purports to reimburse that lessor for the tax imposed by this
| ||||||
7 | Act or the Use Tax Act, as the case may be, if the tax has not | ||||||
8 | been
paid by the lessor. If a lessor improperly collects any | ||||||
9 | such amount from the
lessee, the lessee shall have a legal | ||||||
10 | right to claim a refund of that amount
from the lessor. If, | ||||||
11 | however, that amount is not refunded to the lessee for
any | ||||||
12 | reason, the lessor is liable to pay that amount to the | ||||||
13 | Department.
This paragraph is exempt from the provisions of | ||||||
14 | Section 3-75.
| ||||||
15 | (25) Beginning
on August 2, 2001 (the effective date of | ||||||
16 | Public Act 92-227),
personal property purchased by a lessor
| ||||||
17 | who leases the property, under a lease of one year or longer | ||||||
18 | executed or in
effect at the time the lessor would otherwise be | ||||||
19 | subject to the tax imposed by
this Act, to a governmental body | ||||||
20 | that has been issued an active tax exemption
identification | ||||||
21 | number by the Department under Section 1g of the Retailers'
| ||||||
22 | Occupation Tax Act. If the property is leased in a manner that | ||||||
23 | does not
qualify for this exemption or is used in any other | ||||||
24 | nonexempt manner, the
lessor shall be liable for the tax | ||||||
25 | imposed under this Act or the Use Tax Act,
as the case may be, | ||||||
26 | based on the fair market value of the property at the time
the |
| |||||||
| |||||||
1 | nonqualifying use occurs. No lessor shall collect or attempt | ||||||
2 | to collect
an amount (however designated) that purports to | ||||||
3 | reimburse that lessor for the
tax imposed by this Act or the | ||||||
4 | Use Tax Act, as the case may be, if the tax has
not been paid | ||||||
5 | by the lessor. If a lessor improperly collects any such amount
| ||||||
6 | from the lessee, the lessee shall have a legal right to claim a | ||||||
7 | refund of that
amount from the lessor. If, however, that | ||||||
8 | amount is not refunded to the lessee
for any reason, the lessor | ||||||
9 | is liable to pay that amount to the Department.
This paragraph | ||||||
10 | is exempt from the provisions of Section 3-75.
| ||||||
11 | (26) Beginning January 1, 2008, tangible personal property | ||||||
12 | used in the construction or maintenance of a community water | ||||||
13 | supply, as defined under Section 3.145 of the Environmental | ||||||
14 | Protection Act, that is operated by a not-for-profit | ||||||
15 | corporation that holds a valid water supply permit issued | ||||||
16 | under Title IV of the Environmental Protection Act. This | ||||||
17 | paragraph is exempt from the provisions of Section 3-75.
| ||||||
18 | (27) Beginning January 1, 2010 and continuing through | ||||||
19 | December 31, 2024, materials, parts, equipment, components, | ||||||
20 | and furnishings incorporated into or upon an aircraft as part | ||||||
21 | of the modification, refurbishment, completion, replacement, | ||||||
22 | repair, or maintenance of the aircraft. This exemption | ||||||
23 | includes consumable supplies used in the modification, | ||||||
24 | refurbishment, completion, replacement, repair, and | ||||||
25 | maintenance of aircraft, but excludes any materials, parts, | ||||||
26 | equipment, components, and consumable supplies used in the |
| |||||||
| |||||||
1 | modification, replacement, repair, and maintenance of aircraft | ||||||
2 | engines or power plants, whether such engines or power plants | ||||||
3 | are installed or uninstalled upon any such aircraft. | ||||||
4 | "Consumable supplies" include, but are not limited to, | ||||||
5 | adhesive, tape, sandpaper, general purpose lubricants, | ||||||
6 | cleaning solution, latex gloves, and protective films. This | ||||||
7 | exemption applies only to the use of qualifying tangible | ||||||
8 | personal property transferred incident to the modification, | ||||||
9 | refurbishment, completion, replacement, repair, or maintenance | ||||||
10 | of aircraft by persons who (i) hold an Air Agency Certificate | ||||||
11 | and are empowered to operate an approved repair station by the | ||||||
12 | Federal Aviation Administration, (ii) have a Class IV Rating, | ||||||
13 | and (iii) conduct operations in accordance with Part 145 of | ||||||
14 | the Federal Aviation Regulations. The exemption does not | ||||||
15 | include aircraft operated by a commercial air carrier | ||||||
16 | providing scheduled passenger air service pursuant to | ||||||
17 | authority issued under Part 121 or Part 129 of the Federal | ||||||
18 | Aviation Regulations. The changes made to this paragraph (27) | ||||||
19 | by Public Act 98-534 are declarative of existing law. It is the | ||||||
20 | intent of the General Assembly that the exemption under this | ||||||
21 | paragraph (27) applies continuously from January 1, 2010 | ||||||
22 | through December 31, 2024; however, no claim for credit or | ||||||
23 | refund is allowed for taxes paid as a result of the | ||||||
24 | disallowance of this exemption on or after January 1, 2015 and | ||||||
25 | prior to February 5, 2020 ( the effective date of Public Act | ||||||
26 | 101-629) this amendatory Act of the 101st General Assembly . |
| |||||||
| |||||||
1 | (28) Tangible personal property purchased by a | ||||||
2 | public-facilities corporation, as described in Section | ||||||
3 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
4 | constructing or furnishing a municipal convention hall, but | ||||||
5 | only if the legal title to the municipal convention hall is | ||||||
6 | transferred to the municipality without any further | ||||||
7 | consideration by or on behalf of the municipality at the time | ||||||
8 | of the completion of the municipal convention hall or upon the | ||||||
9 | retirement or redemption of any bonds or other debt | ||||||
10 | instruments issued by the public-facilities corporation in | ||||||
11 | connection with the development of the municipal convention | ||||||
12 | hall. This exemption includes existing public-facilities | ||||||
13 | corporations as provided in Section 11-65-25 of the Illinois | ||||||
14 | Municipal Code. This paragraph is exempt from the provisions | ||||||
15 | of Section 3-75. | ||||||
16 | (29) Beginning January 1, 2017 and through December 31, | ||||||
17 | 2026, menstrual pads, tampons, and menstrual cups. | ||||||
18 | (30) Tangible personal property transferred to a purchaser | ||||||
19 | who is exempt from the tax imposed by this Act by operation of | ||||||
20 | federal law. This paragraph is exempt from the provisions of | ||||||
21 | Section 3-75. | ||||||
22 | (31) Qualified tangible personal property used in the | ||||||
23 | construction or operation of a data center that has been | ||||||
24 | granted a certificate of exemption by the Department of | ||||||
25 | Commerce and Economic Opportunity, whether that tangible | ||||||
26 | personal property is purchased by the owner, operator, or |
| |||||||
| |||||||
1 | tenant of the data center or by a contractor or subcontractor | ||||||
2 | of the owner, operator, or tenant. Data centers that would | ||||||
3 | have qualified for a certificate of exemption prior to January | ||||||
4 | 1, 2020 had Public Act 101-31 this amendatory Act of the 101st | ||||||
5 | General Assembly been in effect, may apply for and obtain an | ||||||
6 | exemption for subsequent purchases of computer equipment or | ||||||
7 | enabling software purchased or leased to upgrade, supplement, | ||||||
8 | or replace computer equipment or enabling software purchased | ||||||
9 | or leased in the original investment that would have | ||||||
10 | qualified. | ||||||
11 | The Department of Commerce and Economic Opportunity shall | ||||||
12 | grant a certificate of exemption under this item (31) to | ||||||
13 | qualified data centers as defined by Section 605-1025 of the | ||||||
14 | Department of Commerce and Economic Opportunity Law of the
| ||||||
15 | Civil Administrative Code of Illinois. | ||||||
16 | For the purposes of this item (31): | ||||||
17 | "Data center" means a building or a series of | ||||||
18 | buildings rehabilitated or constructed to house working | ||||||
19 | servers in one physical location or multiple sites within | ||||||
20 | the State of Illinois. | ||||||
21 | "Qualified tangible personal property" means: | ||||||
22 | electrical systems and equipment; climate control and | ||||||
23 | chilling equipment and systems; mechanical systems and | ||||||
24 | equipment; monitoring and secure systems; emergency | ||||||
25 | generators; hardware; computers; servers; data storage | ||||||
26 | devices; network connectivity equipment; racks; cabinets; |
| |||||||
| |||||||
1 | telecommunications cabling infrastructure; raised floor | ||||||
2 | systems; peripheral components or systems; software; | ||||||
3 | mechanical, electrical, or plumbing systems; battery | ||||||
4 | systems; cooling systems and towers; temperature control | ||||||
5 | systems; other cabling; and other data center | ||||||
6 | infrastructure equipment and systems necessary to operate | ||||||
7 | qualified tangible personal property, including fixtures; | ||||||
8 | and component parts of any of the foregoing, including | ||||||
9 | installation, maintenance, repair, refurbishment, and | ||||||
10 | replacement of qualified tangible personal property to | ||||||
11 | generate, transform, transmit, distribute, or manage | ||||||
12 | electricity necessary to operate qualified tangible | ||||||
13 | personal property; and all other tangible personal | ||||||
14 | property that is essential to the operations of a computer | ||||||
15 | data center. The term "qualified tangible personal | ||||||
16 | property" also includes building materials physically | ||||||
17 | incorporated in to the qualifying data center. To document | ||||||
18 | the exemption allowed under this Section, the retailer | ||||||
19 | must obtain from the purchaser a copy of the certificate | ||||||
20 | of eligibility issued by the Department of Commerce and | ||||||
21 | Economic Opportunity. | ||||||
22 | This item (31) is exempt from the provisions of Section | ||||||
23 | 3-75. | ||||||
24 | (32) Beginning July 1, 2022, breast pumps, breast pump | ||||||
25 | collection and storage supplies, and breast pump kits. This | ||||||
26 | item (32) is exempt from the provisions of Section 3-75. As |
| |||||||
| |||||||
1 | used in this item (32): | ||||||
2 | "Breast pump" means an electrically controlled or | ||||||
3 | manually controlled pump device designed or marketed to be | ||||||
4 | used to express milk from a human breast during lactation, | ||||||
5 | including the pump device and any battery, AC adapter, or | ||||||
6 | other power supply unit that is used to power the pump | ||||||
7 | device and is packaged and sold with the pump device at the | ||||||
8 | time of sale. | ||||||
9 | "Breast pump collection and storage supplies" means | ||||||
10 | items of tangible personal property designed or marketed | ||||||
11 | to be used in conjunction with a breast pump to collect | ||||||
12 | milk expressed from a human breast and to store collected | ||||||
13 | milk until it is ready for consumption. | ||||||
14 | "Breast pump collection and storage supplies" | ||||||
15 | includes, but is not limited to: breast shields and breast | ||||||
16 | shield connectors; breast pump tubes and tubing adapters; | ||||||
17 | breast pump valves and membranes; backflow protectors and | ||||||
18 | backflow protector adaptors; bottles and bottle caps | ||||||
19 | specific to the operation of the breast pump; and breast | ||||||
20 | milk storage bags. | ||||||
21 | "Breast pump collection and storage supplies" does not | ||||||
22 | include: (1) bottles and bottle caps not specific to the | ||||||
23 | operation of the breast pump; (2) breast pump travel bags | ||||||
24 | and other similar carrying accessories, including ice | ||||||
25 | packs, labels, and other similar products; (3) breast pump | ||||||
26 | cleaning supplies; (4) nursing bras, bra pads, breast |
| |||||||
| |||||||
1 | shells, and other similar products; and (5) creams, | ||||||
2 | ointments, and other similar products that relieve | ||||||
3 | breastfeeding-related symptoms or conditions of the | ||||||
4 | breasts or nipples, unless sold as part of a breast pump | ||||||
5 | kit that is pre-packaged by the breast pump manufacturer | ||||||
6 | or distributor. | ||||||
7 | "Breast pump kit" means a kit that: (1) contains no | ||||||
8 | more than a breast pump, breast pump collection and | ||||||
9 | storage supplies, a rechargeable battery for operating the | ||||||
10 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
11 | packs, and a breast pump carrying case; and (2) is | ||||||
12 | pre-packaged as a breast pump kit by the breast pump | ||||||
13 | manufacturer or distributor. | ||||||
14 | (33) (32) Tangible personal property sold by or on behalf | ||||||
15 | of the State Treasurer pursuant to the Revised Uniform | ||||||
16 | Unclaimed Property Act. This item (33) (32) is exempt from the | ||||||
17 | provisions of Section 3-75. | ||||||
18 | (34) Qualified tangible personal property used in the | ||||||
19 | construction or operation of a mega project for which a | ||||||
20 | certificate has been issued by the Department of Revenue as | ||||||
21 | described and defined in Division 22 of Article 10 of the | ||||||
22 | Property Tax Code, whether that tangible personal property is | ||||||
23 | purchased by the owner, operator, or tenant of the mega | ||||||
24 | project or by a contractor or subcontractor of the owner, | ||||||
25 | operator, or tenant. | ||||||
26 | For the purposes of this item (34): |
| |||||||
| |||||||
1 | "Facility" means a building or series of buildings. | ||||||
2 | "Mega project" means a facility that is rehabilitated or | ||||||
3 | constructed as described in Division 22 of Article 10 of the | ||||||
4 | Property Tax Code. | ||||||
5 | "Qualified tangible personal property" means: electrical | ||||||
6 | systems and equipment; climate control and chilling equipment | ||||||
7 | and systems; mechanical systems and equipment; monitoring and | ||||||
8 | secure systems; emergency generators; hardware; computers; | ||||||
9 | servers; data storage devices; network connectivity equipment; | ||||||
10 | racks; cabinets; telecommunications cabling infrastructure; | ||||||
11 | raised floor systems; peripheral components or systems; | ||||||
12 | software; mechanical, electrical, or plumbing systems; battery | ||||||
13 | systems; cooling systems and towers; temperature control | ||||||
14 | systems; other cabling; and other data center infrastructure | ||||||
15 | equipment and systems necessary to operate qualified tangible | ||||||
16 | personal property, including fixtures; and component parts of | ||||||
17 | any of the foregoing, including installation, maintenance, | ||||||
18 | repair, refurbishment, and replacement of qualified tangible | ||||||
19 | personal property to generate, transform, transmit, | ||||||
20 | distribute, or manage electricity necessary to operate | ||||||
21 | qualified tangible personal property; and all other tangible | ||||||
22 | personal property that is essential to the operations of a | ||||||
23 | mega project. The term "qualified tangible personal property" | ||||||
24 | also includes building materials to be incorporated into the | ||||||
25 | mega project. To document the exemption allowed under this | ||||||
26 | Section, the retailer, contractor or subcontractor or supplier |
| |||||||
| |||||||
1 | must obtain from the purchaser a copy of the certificate | ||||||
2 | issued by the Department of Revenue for the mega project as | ||||||
3 | described and defined in Division 22 of Article 10 of the | ||||||
4 | Property Tax Code. | ||||||
5 | This item (34) is exempt from the provisions of Section | ||||||
6 | 3-75. | ||||||
7 | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; | ||||||
8 | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article | ||||||
9 | 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section | ||||||
10 | 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
| ||||||
11 | Section 15. The Service Occupation Tax Act is amended by | ||||||
12 | changing Section 3-5 as follows:
| ||||||
13 | (35 ILCS 115/3-5)
| ||||||
14 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
15 | property is
exempt from the tax imposed by this Act:
| ||||||
16 | (1) Personal property sold by a corporation, society, | ||||||
17 | association,
foundation, institution, or organization, other | ||||||
18 | than a limited liability
company, that is organized and | ||||||
19 | operated as a not-for-profit service enterprise
for the | ||||||
20 | benefit of persons 65 years of age or older if the personal | ||||||
21 | property
was not purchased by the enterprise for the purpose | ||||||
22 | of resale by the
enterprise.
| ||||||
23 | (2) Personal property purchased by a not-for-profit | ||||||
24 | Illinois county fair
association for use in conducting, |
| |||||||
| |||||||
1 | operating, or promoting the county fair.
| ||||||
2 | (3) Personal property purchased by any not-for-profit
arts | ||||||
3 | or cultural organization that establishes, by proof required | ||||||
4 | by the
Department by
rule, that it has received an exemption | ||||||
5 | under Section 501(c)(3) of the
Internal Revenue Code and that | ||||||
6 | is organized and operated primarily for the
presentation
or | ||||||
7 | support of arts or cultural programming, activities, or | ||||||
8 | services. These
organizations include, but are not limited to, | ||||||
9 | music and dramatic arts
organizations such as symphony | ||||||
10 | orchestras and theatrical groups, arts and
cultural service | ||||||
11 | organizations, local arts councils, visual arts organizations,
| ||||||
12 | and media arts organizations.
On and after July 1, 2001 (the | ||||||
13 | effective date of Public Act 92-35), however, an entity | ||||||
14 | otherwise eligible for this exemption shall not
make tax-free | ||||||
15 | purchases unless it has an active identification number issued | ||||||
16 | by
the Department.
| ||||||
17 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
18 | coinage
issued by the State of Illinois, the government of the | ||||||
19 | United States of
America, or the government of any foreign | ||||||
20 | country, and bullion.
| ||||||
21 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
22 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
23 | equipment, including
repair and
replacement parts, both new | ||||||
24 | and used, and including that manufactured on
special order or | ||||||
25 | purchased for lease, certified by the purchaser to be used
| ||||||
26 | primarily for graphic arts production.
Equipment includes |
| |||||||
| |||||||
1 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
2 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
3 | immediate change
upon a graphic arts product. Beginning on | ||||||
4 | July 1, 2017, graphic arts machinery and equipment is included | ||||||
5 | in the manufacturing and assembling machinery and equipment | ||||||
6 | exemption under Section 2 of this Act.
| ||||||
7 | (6) Personal property sold by a teacher-sponsored student | ||||||
8 | organization
affiliated with an elementary or secondary school | ||||||
9 | located in Illinois.
| ||||||
10 | (7) Farm machinery and equipment, both new and used, | ||||||
11 | including that
manufactured on special order, certified by the | ||||||
12 | purchaser to be used
primarily for production agriculture or | ||||||
13 | State or federal agricultural
programs, including individual | ||||||
14 | replacement parts for the machinery and
equipment, including | ||||||
15 | machinery and equipment purchased for lease,
and including | ||||||
16 | implements of husbandry defined in Section 1-130 of
the | ||||||
17 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
18 | chemical and
fertilizer spreaders, and nurse wagons required | ||||||
19 | to be registered
under Section 3-809 of the Illinois Vehicle | ||||||
20 | Code,
but
excluding other motor vehicles required to be | ||||||
21 | registered under the Illinois
Vehicle
Code.
Horticultural | ||||||
22 | polyhouses or hoop houses used for propagating, growing, or
| ||||||
23 | overwintering plants shall be considered farm machinery and | ||||||
24 | equipment under
this item (7).
Agricultural chemical tender | ||||||
25 | tanks and dry boxes shall include units sold
separately from a | ||||||
26 | motor vehicle required to be licensed and units sold mounted
|
| |||||||
| |||||||
1 | on a motor vehicle required to be licensed if the selling price | ||||||
2 | of the tender
is separately stated.
| ||||||
3 | Farm machinery and equipment shall include precision | ||||||
4 | farming equipment
that is
installed or purchased to be | ||||||
5 | installed on farm machinery and equipment
including, but not | ||||||
6 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
7 | or spreaders.
Precision farming equipment includes, but is not | ||||||
8 | limited to,
soil testing sensors, computers, monitors, | ||||||
9 | software, global positioning
and mapping systems, and other | ||||||
10 | such equipment.
| ||||||
11 | Farm machinery and equipment also includes computers, | ||||||
12 | sensors, software, and
related equipment used primarily in the
| ||||||
13 | computer-assisted operation of production agriculture | ||||||
14 | facilities, equipment,
and activities such as, but
not limited | ||||||
15 | to,
the collection, monitoring, and correlation of
animal and | ||||||
16 | crop data for the purpose of
formulating animal diets and | ||||||
17 | agricultural chemicals. This item (7) is exempt
from the | ||||||
18 | provisions of
Section 3-55.
| ||||||
19 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
20 | to or used by an air common
carrier, certified by the carrier | ||||||
21 | to be used for consumption, shipment,
or storage in the | ||||||
22 | conduct of its business as an air common carrier, for
a flight | ||||||
23 | destined for or returning from a location or locations
outside | ||||||
24 | the United States without regard to previous or subsequent | ||||||
25 | domestic
stopovers.
| ||||||
26 | Beginning July 1, 2013, fuel and petroleum products sold |
| |||||||
| |||||||
1 | to or used by an air carrier, certified by the carrier to be | ||||||
2 | used for consumption, shipment, or storage in the conduct of | ||||||
3 | its business as an air common carrier, for a flight that (i) is | ||||||
4 | engaged in foreign trade or is engaged in trade between the | ||||||
5 | United States and any of its possessions and (ii) transports | ||||||
6 | at least one individual or package for hire from the city of | ||||||
7 | origination to the city of final destination on the same | ||||||
8 | aircraft, without regard to a change in the flight number of | ||||||
9 | that aircraft. | ||||||
10 | (9) Proceeds of mandatory service charges separately
| ||||||
11 | stated on customers' bills for the purchase and consumption of | ||||||
12 | food and
beverages, to the extent that the proceeds of the | ||||||
13 | service charge are in fact
turned over as tips or as a | ||||||
14 | substitute for tips to the employees who
participate directly | ||||||
15 | in preparing, serving, hosting or cleaning up the
food or | ||||||
16 | beverage function with respect to which the service charge is | ||||||
17 | imposed.
| ||||||
18 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
19 | and production
equipment,
including (i) rigs and parts of | ||||||
20 | rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) | ||||||
21 | pipe and tubular goods, including casing and
drill strings, | ||||||
22 | (iii) pumps and pump-jack units, (iv) storage tanks and flow
| ||||||
23 | lines, (v) any individual replacement part for oil field | ||||||
24 | exploration,
drilling, and production equipment, and (vi) | ||||||
25 | machinery and equipment purchased
for lease; but
excluding | ||||||
26 | motor vehicles required to be registered under the Illinois
|
| |||||||
| |||||||
1 | Vehicle Code.
| ||||||
2 | (11) Photoprocessing machinery and equipment, including | ||||||
3 | repair and
replacement parts, both new and used, including | ||||||
4 | that manufactured on
special order, certified by the purchaser | ||||||
5 | to be used primarily for
photoprocessing, and including | ||||||
6 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
7 | (12) Until July 1, 2028, coal and aggregate exploration, | ||||||
8 | mining, off-highway hauling,
processing,
maintenance, and | ||||||
9 | reclamation equipment, including
replacement parts and | ||||||
10 | equipment, and including
equipment
purchased for lease, but | ||||||
11 | excluding motor vehicles required to be registered
under the | ||||||
12 | Illinois Vehicle Code. The changes made to this Section by | ||||||
13 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
14 | for credit or refund is allowed on or after August 16, 2013 | ||||||
15 | (the effective date of Public Act 98-456)
for such taxes paid | ||||||
16 | during the period beginning July 1, 2003 and ending on August | ||||||
17 | 16, 2013 (the effective date of Public Act 98-456).
| ||||||
18 | (13) Beginning January 1, 1992 and through June 30, 2016, | ||||||
19 | food for human consumption that is to be consumed off the | ||||||
20 | premises
where it is sold (other than alcoholic beverages, | ||||||
21 | soft drinks and food that
has been prepared for immediate | ||||||
22 | consumption) and prescription and
non-prescription medicines, | ||||||
23 | drugs, medical appliances, and insulin, urine
testing | ||||||
24 | materials, syringes, and needles used by diabetics, for human | ||||||
25 | use,
when purchased for use by a person receiving medical | ||||||
26 | assistance under
Article V of the Illinois Public Aid Code who |
| |||||||
| |||||||
1 | resides in a licensed
long-term care facility, as defined in | ||||||
2 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
3 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
4 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
5 | (14) Semen used for artificial insemination of livestock | ||||||
6 | for direct
agricultural production.
| ||||||
7 | (15) Horses, or interests in horses, registered with and | ||||||
8 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
9 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
10 | Horse Association, United States
Trotting Association, or | ||||||
11 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
12 | racing for prizes. This item (15) is exempt from the | ||||||
13 | provisions of Section 3-55, and the exemption provided for | ||||||
14 | under this item (15) applies for all periods beginning May 30, | ||||||
15 | 1995, but no claim for credit or refund is allowed on or after | ||||||
16 | January 1, 2008 (the effective date of Public Act 95-88)
for | ||||||
17 | such taxes paid during the period beginning May 30, 2000 and | ||||||
18 | ending on January 1, 2008 (the effective date of Public Act | ||||||
19 | 95-88).
| ||||||
20 | (16) Computers and communications equipment utilized for | ||||||
21 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
22 | analysis, or treatment of hospital patients sold to a lessor | ||||||
23 | who leases the
equipment, under a lease of one year or longer | ||||||
24 | executed or in effect at the
time of the purchase, to a
| ||||||
25 | hospital
that has been issued an active tax exemption | ||||||
26 | identification number by the
Department under Section 1g of |
| |||||||
| |||||||
1 | the Retailers' Occupation Tax Act.
| ||||||
2 | (17) Personal property sold to a lessor who leases the
| ||||||
3 | property, under a
lease of one year or longer executed or in | ||||||
4 | effect at the time of the purchase,
to a governmental body
that | ||||||
5 | has been issued an active tax exemption identification number | ||||||
6 | by the
Department under Section 1g of the Retailers' | ||||||
7 | Occupation Tax Act.
| ||||||
8 | (18) Beginning with taxable years ending on or after | ||||||
9 | December
31, 1995
and
ending with taxable years ending on or | ||||||
10 | before December 31, 2004,
personal property that is
donated | ||||||
11 | for disaster relief to be used in a State or federally declared
| ||||||
12 | disaster area in Illinois or bordering Illinois by a | ||||||
13 | manufacturer or retailer
that is registered in this State to a | ||||||
14 | corporation, society, association,
foundation, or institution | ||||||
15 | that has been issued a sales tax exemption
identification | ||||||
16 | number by the Department that assists victims of the disaster
| ||||||
17 | who reside within the declared disaster area.
| ||||||
18 | (19) Beginning with taxable years ending on or after | ||||||
19 | December
31, 1995 and
ending with taxable years ending on or | ||||||
20 | before December 31, 2004, personal
property that is used in | ||||||
21 | the performance of infrastructure repairs in this
State, | ||||||
22 | including but not limited to municipal roads and streets, | ||||||
23 | access roads,
bridges, sidewalks, waste disposal systems, | ||||||
24 | water and sewer line extensions,
water distribution and | ||||||
25 | purification facilities, storm water drainage and
retention | ||||||
26 | facilities, and sewage treatment facilities, resulting from a |
| |||||||
| |||||||
1 | State
or federally declared disaster in Illinois or bordering | ||||||
2 | Illinois when such
repairs are initiated on facilities located | ||||||
3 | in the declared disaster area
within 6 months after the | ||||||
4 | disaster.
| ||||||
5 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
6 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
7 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
8 | provisions
of
Section 3-55.
| ||||||
9 | (21) A motor vehicle, as that term is defined in Section | ||||||
10 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
11 | corporation, limited liability
company, society, association, | ||||||
12 | foundation, or institution that is determined by
the | ||||||
13 | Department to be organized and operated exclusively for | ||||||
14 | educational
purposes. For purposes of this exemption, "a | ||||||
15 | corporation, limited liability
company, society, association, | ||||||
16 | foundation, or institution organized and
operated
exclusively | ||||||
17 | for educational purposes" means all tax-supported public | ||||||
18 | schools,
private schools that offer systematic instruction in | ||||||
19 | useful branches of
learning by methods common to public | ||||||
20 | schools and that compare favorably in
their scope and | ||||||
21 | intensity with the course of study presented in tax-supported
| ||||||
22 | schools, and vocational or technical schools or institutes | ||||||
23 | organized and
operated exclusively to provide a course of | ||||||
24 | study of not less than 6 weeks
duration and designed to prepare | ||||||
25 | individuals to follow a trade or to pursue a
manual, | ||||||
26 | technical, mechanical, industrial, business, or commercial
|
| |||||||
| |||||||
1 | occupation.
| ||||||
2 | (22) Beginning January 1, 2000, personal property, | ||||||
3 | including
food,
purchased through fundraising
events for the | ||||||
4 | benefit of
a public or private elementary or
secondary school, | ||||||
5 | a group of those schools, or one or more school
districts if | ||||||
6 | the events are
sponsored by an entity recognized by the school | ||||||
7 | district that consists
primarily of volunteers and includes
| ||||||
8 | parents and teachers of the school children. This paragraph | ||||||
9 | does not apply
to fundraising
events (i) for the benefit of | ||||||
10 | private home instruction or (ii)
for which the fundraising | ||||||
11 | entity purchases the personal property sold at
the events from | ||||||
12 | another individual or entity that sold the property for the
| ||||||
13 | purpose of resale by the fundraising entity and that
profits | ||||||
14 | from the sale to the
fundraising entity. This paragraph is | ||||||
15 | exempt
from the provisions
of Section 3-55.
| ||||||
16 | (23) Beginning January 1, 2000
and through December 31, | ||||||
17 | 2001, new or used automatic vending
machines that prepare and | ||||||
18 | serve hot food and beverages, including coffee, soup,
and
| ||||||
19 | other items, and replacement parts for these machines.
| ||||||
20 | Beginning January 1,
2002 and through June 30, 2003, machines | ||||||
21 | and parts for
machines used in commercial, coin-operated | ||||||
22 | amusement
and vending business if a use or occupation tax is | ||||||
23 | paid on the gross receipts
derived from
the use of the | ||||||
24 | commercial, coin-operated amusement and vending machines.
This | ||||||
25 | paragraph is exempt from the provisions of Section 3-55.
| ||||||
26 | (24) Beginning
on August 2, 2001 (the effective date of |
| |||||||
| |||||||
1 | Public Act 92-227),
computers and communications equipment
| ||||||
2 | utilized for any hospital purpose and equipment used in the | ||||||
3 | diagnosis,
analysis, or treatment of hospital patients sold to | ||||||
4 | a lessor who leases the
equipment, under a lease of one year or | ||||||
5 | longer executed or in effect at the
time of the purchase, to a | ||||||
6 | hospital that has been issued an active tax
exemption | ||||||
7 | identification number by the Department under Section 1g of | ||||||
8 | the
Retailers' Occupation Tax Act. This paragraph is exempt | ||||||
9 | from the provisions of
Section 3-55.
| ||||||
10 | (25) Beginning
on August 2, 2001 (the effective date of | ||||||
11 | Public Act 92-227),
personal property sold to a lessor who
| ||||||
12 | leases the property, under a lease of one year or longer | ||||||
13 | executed or in effect
at the time of the purchase, to a | ||||||
14 | governmental body that has been issued an
active tax exemption | ||||||
15 | identification number by the Department under Section 1g
of | ||||||
16 | the Retailers' Occupation Tax Act. This paragraph is exempt | ||||||
17 | from the
provisions of Section 3-55.
| ||||||
18 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
19 | 2016, tangible personal property
purchased
from an Illinois | ||||||
20 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
21 | activities in Illinois who will, upon receipt of the property | ||||||
22 | in Illinois,
temporarily store the property in Illinois (i) | ||||||
23 | for the purpose of subsequently
transporting it outside this | ||||||
24 | State for use or consumption thereafter solely
outside this | ||||||
25 | State or (ii) for the purpose of being processed, fabricated, | ||||||
26 | or
manufactured into, attached to, or incorporated into other |
| |||||||
| |||||||
1 | tangible personal
property to be transported outside this | ||||||
2 | State and thereafter used or consumed
solely outside this | ||||||
3 | State. The Director of Revenue shall, pursuant to rules
| ||||||
4 | adopted in accordance with the Illinois Administrative | ||||||
5 | Procedure Act, issue a
permit to any taxpayer in good standing | ||||||
6 | with the Department who is eligible for
the exemption under | ||||||
7 | this paragraph (26). The permit issued under
this paragraph | ||||||
8 | (26) shall authorize the holder, to the extent and
in the | ||||||
9 | manner specified in the rules adopted under this Act, to | ||||||
10 | purchase
tangible personal property from a retailer exempt | ||||||
11 | from the taxes imposed by
this Act. Taxpayers shall maintain | ||||||
12 | all necessary books and records to
substantiate the use and | ||||||
13 | consumption of all such tangible personal property
outside of | ||||||
14 | the State of Illinois.
| ||||||
15 | (27) Beginning January 1, 2008, tangible personal property | ||||||
16 | used in the construction or maintenance of a community water | ||||||
17 | supply, as defined under Section 3.145 of the Environmental | ||||||
18 | Protection Act, that is operated by a not-for-profit | ||||||
19 | corporation that holds a valid water supply permit issued | ||||||
20 | under Title IV of the Environmental Protection Act. This | ||||||
21 | paragraph is exempt from the provisions of Section 3-55.
| ||||||
22 | (28) Tangible personal property sold to a | ||||||
23 | public-facilities corporation, as described in Section | ||||||
24 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
25 | constructing or furnishing a municipal convention hall, but | ||||||
26 | only if the legal title to the municipal convention hall is |
| |||||||
| |||||||
1 | transferred to the municipality without any further | ||||||
2 | consideration by or on behalf of the municipality at the time | ||||||
3 | of the completion of the municipal convention hall or upon the | ||||||
4 | retirement or redemption of any bonds or other debt | ||||||
5 | instruments issued by the public-facilities corporation in | ||||||
6 | connection with the development of the municipal convention | ||||||
7 | hall. This exemption includes existing public-facilities | ||||||
8 | corporations as provided in Section 11-65-25 of the Illinois | ||||||
9 | Municipal Code. This paragraph is exempt from the provisions | ||||||
10 | of Section 3-55. | ||||||
11 | (29) Beginning January 1, 2010 and continuing through | ||||||
12 | December 31, 2024, materials, parts, equipment, components, | ||||||
13 | and furnishings incorporated into or upon an aircraft as part | ||||||
14 | of the modification, refurbishment, completion, replacement, | ||||||
15 | repair, or maintenance of the aircraft. This exemption | ||||||
16 | includes consumable supplies used in the modification, | ||||||
17 | refurbishment, completion, replacement, repair, and | ||||||
18 | maintenance of aircraft, but excludes any materials, parts, | ||||||
19 | equipment, components, and consumable supplies used in the | ||||||
20 | modification, replacement, repair, and maintenance of aircraft | ||||||
21 | engines or power plants, whether such engines or power plants | ||||||
22 | are installed or uninstalled upon any such aircraft. | ||||||
23 | "Consumable supplies" include, but are not limited to, | ||||||
24 | adhesive, tape, sandpaper, general purpose lubricants, | ||||||
25 | cleaning solution, latex gloves, and protective films. This | ||||||
26 | exemption applies only to the transfer of qualifying tangible |
| |||||||
| |||||||
1 | personal property incident to the modification, refurbishment, | ||||||
2 | completion, replacement, repair, or maintenance of an aircraft | ||||||
3 | by persons who (i) hold an Air Agency Certificate and are | ||||||
4 | empowered to operate an approved repair station by the Federal | ||||||
5 | Aviation Administration, (ii) have a Class IV Rating, and | ||||||
6 | (iii) conduct operations in accordance with Part 145 of the | ||||||
7 | Federal Aviation Regulations. The exemption does not include | ||||||
8 | aircraft operated by a commercial air carrier providing | ||||||
9 | scheduled passenger air service pursuant to authority issued | ||||||
10 | under Part 121 or Part 129 of the Federal Aviation | ||||||
11 | Regulations. The changes made to this paragraph (29) by Public | ||||||
12 | Act 98-534 are declarative of existing law. It is the intent of | ||||||
13 | the General Assembly that the exemption under this paragraph | ||||||
14 | (29) applies continuously from January 1, 2010 through | ||||||
15 | December 31, 2024; however, no claim for credit or refund is | ||||||
16 | allowed for taxes paid as a result of the disallowance of this | ||||||
17 | exemption on or after January 1, 2015 and prior to February 5, | ||||||
18 | 2020 ( the effective date of Public Act 101-629) this | ||||||
19 | amendatory Act of the 101st General Assembly . | ||||||
20 | (30) Beginning January 1, 2017 and through December 31, | ||||||
21 | 2026, menstrual pads, tampons, and menstrual cups. | ||||||
22 | (31) Tangible personal property transferred to a purchaser | ||||||
23 | who is exempt from tax by operation of federal law. This | ||||||
24 | paragraph is exempt from the provisions of Section 3-55. | ||||||
25 | (32) Qualified tangible personal property used in the | ||||||
26 | construction or operation of a data center that has been |
| |||||||
| |||||||
1 | granted a certificate of exemption by the Department of | ||||||
2 | Commerce and Economic Opportunity, whether that tangible | ||||||
3 | personal property is purchased by the owner, operator, or | ||||||
4 | tenant of the data center or by a contractor or subcontractor | ||||||
5 | of the owner, operator, or tenant. Data centers that would | ||||||
6 | have qualified for a certificate of exemption prior to January | ||||||
7 | 1, 2020 had Public Act 101-31 this amendatory Act of the 101st | ||||||
8 | General Assembly been in effect, may apply for and obtain an | ||||||
9 | exemption for subsequent purchases of computer equipment or | ||||||
10 | enabling software purchased or leased to upgrade, supplement, | ||||||
11 | or replace computer equipment or enabling software purchased | ||||||
12 | or leased in the original investment that would have | ||||||
13 | qualified. | ||||||
14 | The Department of Commerce and Economic Opportunity shall | ||||||
15 | grant a certificate of exemption under this item (32) to | ||||||
16 | qualified data centers as defined by Section 605-1025 of the | ||||||
17 | Department of Commerce and Economic Opportunity Law of the
| ||||||
18 | Civil Administrative Code of Illinois. | ||||||
19 | For the purposes of this item (32): | ||||||
20 | "Data center" means a building or a series of | ||||||
21 | buildings rehabilitated or constructed to house working | ||||||
22 | servers in one physical location or multiple sites within | ||||||
23 | the State of Illinois. | ||||||
24 | "Qualified tangible personal property" means: | ||||||
25 | electrical systems and equipment; climate control and | ||||||
26 | chilling equipment and systems; mechanical systems and |
| |||||||
| |||||||
1 | equipment; monitoring and secure systems; emergency | ||||||
2 | generators; hardware; computers; servers; data storage | ||||||
3 | devices; network connectivity equipment; racks; cabinets; | ||||||
4 | telecommunications cabling infrastructure; raised floor | ||||||
5 | systems; peripheral components or systems; software; | ||||||
6 | mechanical, electrical, or plumbing systems; battery | ||||||
7 | systems; cooling systems and towers; temperature control | ||||||
8 | systems; other cabling; and other data center | ||||||
9 | infrastructure equipment and systems necessary to operate | ||||||
10 | qualified tangible personal property, including fixtures; | ||||||
11 | and component parts of any of the foregoing, including | ||||||
12 | installation, maintenance, repair, refurbishment, and | ||||||
13 | replacement of qualified tangible personal property to | ||||||
14 | generate, transform, transmit, distribute, or manage | ||||||
15 | electricity necessary to operate qualified tangible | ||||||
16 | personal property; and all other tangible personal | ||||||
17 | property that is essential to the operations of a computer | ||||||
18 | data center. The term "qualified tangible personal | ||||||
19 | property" also includes building materials physically | ||||||
20 | incorporated in to the qualifying data center. To document | ||||||
21 | the exemption allowed under this Section, the retailer | ||||||
22 | must obtain from the purchaser a copy of the certificate | ||||||
23 | of eligibility issued by the Department of Commerce and | ||||||
24 | Economic Opportunity. | ||||||
25 | This item (32) is exempt from the provisions of Section | ||||||
26 | 3-55. |
| |||||||
| |||||||
1 | (33) Beginning July 1, 2022, breast pumps, breast pump | ||||||
2 | collection and storage supplies, and breast pump kits. This | ||||||
3 | item (33) is exempt from the provisions of Section 3-55. As | ||||||
4 | used in this item (33): | ||||||
5 | "Breast pump" means an electrically controlled or | ||||||
6 | manually controlled pump device designed or marketed to be | ||||||
7 | used to express milk from a human breast during lactation, | ||||||
8 | including the pump device and any battery, AC adapter, or | ||||||
9 | other power supply unit that is used to power the pump | ||||||
10 | device and is packaged and sold with the pump device at the | ||||||
11 | time of sale. | ||||||
12 | "Breast pump collection and storage supplies" means | ||||||
13 | items of tangible personal property designed or marketed | ||||||
14 | to be used in conjunction with a breast pump to collect | ||||||
15 | milk expressed from a human breast and to store collected | ||||||
16 | milk until it is ready for consumption. | ||||||
17 | "Breast pump collection and storage supplies" | ||||||
18 | includes, but is not limited to: breast shields and breast | ||||||
19 | shield connectors; breast pump tubes and tubing adapters; | ||||||
20 | breast pump valves and membranes; backflow protectors and | ||||||
21 | backflow protector adaptors; bottles and bottle caps | ||||||
22 | specific to the operation of the breast pump; and breast | ||||||
23 | milk storage bags. | ||||||
24 | "Breast pump collection and storage supplies" does not | ||||||
25 | include: (1) bottles and bottle caps not specific to the | ||||||
26 | operation of the breast pump; (2) breast pump travel bags |
| |||||||
| |||||||
1 | and other similar carrying accessories, including ice | ||||||
2 | packs, labels, and other similar products; (3) breast pump | ||||||
3 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
4 | shells, and other similar products; and (5) creams, | ||||||
5 | ointments, and other similar products that relieve | ||||||
6 | breastfeeding-related symptoms or conditions of the | ||||||
7 | breasts or nipples, unless sold as part of a breast pump | ||||||
8 | kit that is pre-packaged by the breast pump manufacturer | ||||||
9 | or distributor. | ||||||
10 | "Breast pump kit" means a kit that: (1) contains no | ||||||
11 | more than a breast pump, breast pump collection and | ||||||
12 | storage supplies, a rechargeable battery for operating the | ||||||
13 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
14 | packs, and a breast pump carrying case; and (2) is | ||||||
15 | pre-packaged as a breast pump kit by the breast pump | ||||||
16 | manufacturer or distributor. | ||||||
17 | (34) (33) Tangible personal property sold by or on behalf | ||||||
18 | of the State Treasurer pursuant to the Revised Uniform | ||||||
19 | Unclaimed Property Act. This item (34) (33) is exempt from the | ||||||
20 | provisions of Section 3-55. | ||||||
21 | (35) Qualified tangible personal property used in the | ||||||
22 | construction or operation of a mega project for which a | ||||||
23 | certificate has been issued by the Department of Revenue as | ||||||
24 | described and defined in Division 22 of Article 10 of the | ||||||
25 | Property Tax Code, whether that tangible personal property is | ||||||
26 | purchased by the owner, operator, or tenant of the mega |
| |||||||
| |||||||
1 | project or by a contractor or subcontractor of the owner, | ||||||
2 | operator, or tenant. | ||||||
3 | For the purposes of this item (35): | ||||||
4 | "Facility" means a building or series of buildings. | ||||||
5 | "Mega project" means a facility that is rehabilitated or | ||||||
6 | constructed as described in Division 22 of Article 10 of the | ||||||
7 | Property Tax Code. | ||||||
8 | "Qualified tangible personal property" means: electrical | ||||||
9 | systems and equipment; climate control and chilling equipment | ||||||
10 | and systems; mechanical systems and equipment; monitoring and | ||||||
11 | secure systems; emergency generators; hardware; computers; | ||||||
12 | servers; data storage devices; network connectivity equipment; | ||||||
13 | racks; cabinets; telecommunications cabling infrastructure; | ||||||
14 | raised floor systems; peripheral components or systems; | ||||||
15 | software; mechanical, electrical, or plumbing systems; battery | ||||||
16 | systems; cooling systems and towers; temperature control | ||||||
17 | systems; other cabling; and other data center infrastructure | ||||||
18 | equipment and systems necessary to operate qualified tangible | ||||||
19 | personal property, including fixtures; and component parts of | ||||||
20 | any of the foregoing, including installation, maintenance, | ||||||
21 | repair, refurbishment, and replacement of qualified tangible | ||||||
22 | personal property to generate, transform, transmit, | ||||||
23 | distribute, or manage electricity necessary to operate | ||||||
24 | qualified tangible personal property; and all other tangible | ||||||
25 | personal property that is essential to the operations of a | ||||||
26 | mega project. The term "qualified tangible personal property" |
| |||||||
| |||||||
1 | also includes building materials to be incorporated into the | ||||||
2 | mega project. To document the exemption allowed under this | ||||||
3 | Section, the retailer, contractor or subcontractor or supplier | ||||||
4 | must obtain from the purchaser a copy of the certificate | ||||||
5 | issued by the Department of Revenue for the mega project as | ||||||
6 | described and defined in Division 22 of Article 10 of the | ||||||
7 | Property Tax Code. | ||||||
8 | This item (35) is exempt from the provisions of Section | ||||||
9 | 3-55. | ||||||
10 | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; | ||||||
11 | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article | ||||||
12 | 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section | ||||||
13 | 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
| ||||||
14 | Section 20. The Retailers' Occupation Tax Act is amended | ||||||
15 | by changing Section 2-5 as follows:
| ||||||
16 | (35 ILCS 120/2-5)
| ||||||
17 | Sec. 2-5. Exemptions. Gross receipts from proceeds from | ||||||
18 | the sale of
the following tangible personal property are | ||||||
19 | exempt from the tax imposed
by this Act:
| ||||||
20 | (1) Farm chemicals.
| ||||||
21 | (2) Farm machinery and equipment, both new and used, | ||||||
22 | including that
manufactured on special order, certified by | ||||||
23 | the purchaser to be used
primarily for production | ||||||
24 | agriculture or State or federal agricultural
programs, |
| |||||||
| |||||||
1 | including individual replacement parts for the machinery | ||||||
2 | and
equipment, including machinery and equipment purchased | ||||||
3 | for lease,
and including implements of husbandry defined | ||||||
4 | in Section 1-130 of
the Illinois Vehicle Code, farm | ||||||
5 | machinery and agricultural chemical and
fertilizer | ||||||
6 | spreaders, and nurse wagons required to be registered
| ||||||
7 | under Section 3-809 of the Illinois Vehicle Code,
but
| ||||||
8 | excluding other motor vehicles required to be registered | ||||||
9 | under the Illinois
Vehicle Code.
Horticultural polyhouses | ||||||
10 | or hoop houses used for propagating, growing, or
| ||||||
11 | overwintering plants shall be considered farm machinery | ||||||
12 | and equipment under
this item (2).
Agricultural chemical | ||||||
13 | tender tanks and dry boxes shall include units sold
| ||||||
14 | separately from a motor vehicle required to be licensed | ||||||
15 | and units sold mounted
on a motor vehicle required to be | ||||||
16 | licensed, if the selling price of the tender
is separately | ||||||
17 | stated.
| ||||||
18 | Farm machinery and equipment shall include precision | ||||||
19 | farming equipment
that is
installed or purchased to be | ||||||
20 | installed on farm machinery and equipment
including, but | ||||||
21 | not limited to, tractors, harvesters, sprayers, planters,
| ||||||
22 | seeders, or spreaders.
Precision farming equipment | ||||||
23 | includes, but is not limited to,
soil testing sensors, | ||||||
24 | computers, monitors, software, global positioning
and | ||||||
25 | mapping systems, and other such equipment.
| ||||||
26 | Farm machinery and equipment also includes computers, |
| |||||||
| |||||||
1 | sensors, software, and
related equipment used primarily in | ||||||
2 | the
computer-assisted operation of production agriculture | ||||||
3 | facilities, equipment,
and activities such as, but
not | ||||||
4 | limited to,
the collection, monitoring, and correlation of
| ||||||
5 | animal and crop data for the purpose of
formulating animal | ||||||
6 | diets and agricultural chemicals. This item (2) is exempt
| ||||||
7 | from the provisions of
Section 2-70.
| ||||||
8 | (3) Until July 1, 2003, distillation machinery and | ||||||
9 | equipment, sold as a
unit or kit,
assembled or installed | ||||||
10 | by the retailer, certified by the user to be used
only for | ||||||
11 | the production of ethyl alcohol that will be used for | ||||||
12 | consumption
as motor fuel or as a component of motor fuel | ||||||
13 | for the personal use of the
user, and not subject to sale | ||||||
14 | or resale.
| ||||||
15 | (4) Until July 1, 2003 and beginning again September | ||||||
16 | 1, 2004 through August 30, 2014, graphic arts machinery | ||||||
17 | and equipment, including
repair and
replacement parts, | ||||||
18 | both new and used, and including that manufactured on
| ||||||
19 | special order or purchased for lease, certified by the | ||||||
20 | purchaser to be used
primarily for graphic arts | ||||||
21 | production.
Equipment includes chemicals or
chemicals | ||||||
22 | acting as catalysts but only if
the chemicals or chemicals | ||||||
23 | acting as catalysts effect a direct and immediate
change | ||||||
24 | upon a
graphic arts product. Beginning on July 1, 2017, | ||||||
25 | graphic arts machinery and equipment is included in the | ||||||
26 | manufacturing and assembling machinery and equipment |
| |||||||
| |||||||
1 | exemption under paragraph (14).
| ||||||
2 | (5) A motor vehicle that is used for automobile | ||||||
3 | renting, as defined in the Automobile Renting Occupation | ||||||
4 | and Use Tax Act. This paragraph is exempt from
the | ||||||
5 | provisions of Section 2-70.
| ||||||
6 | (6) Personal property sold by a teacher-sponsored | ||||||
7 | student organization
affiliated with an elementary or | ||||||
8 | secondary school located in Illinois.
| ||||||
9 | (7) Until July 1, 2003, proceeds of that portion of | ||||||
10 | the selling price of
a passenger car the
sale of which is | ||||||
11 | subject to the Replacement Vehicle Tax.
| ||||||
12 | (8) Personal property sold to an Illinois county fair | ||||||
13 | association for
use in conducting, operating, or promoting | ||||||
14 | the county fair.
| ||||||
15 | (9) Personal property sold to a not-for-profit arts
or | ||||||
16 | cultural organization that establishes, by proof required | ||||||
17 | by the Department
by
rule, that it has received an | ||||||
18 | exemption under Section 501(c)(3) of the
Internal Revenue | ||||||
19 | Code and that is organized and operated primarily for the
| ||||||
20 | presentation
or support of arts or cultural programming, | ||||||
21 | activities, or services. These
organizations include, but | ||||||
22 | are not limited to, music and dramatic arts
organizations | ||||||
23 | such as symphony orchestras and theatrical groups, arts | ||||||
24 | and
cultural service organizations, local arts councils, | ||||||
25 | visual arts organizations,
and media arts organizations.
| ||||||
26 | On and after July 1, 2001 (the effective date of Public Act |
| |||||||
| |||||||
1 | 92-35), however, an entity otherwise eligible for this | ||||||
2 | exemption shall not
make tax-free purchases unless it has | ||||||
3 | an active identification number issued by
the Department.
| ||||||
4 | (10) Personal property sold by a corporation, society, | ||||||
5 | association,
foundation, institution, or organization, | ||||||
6 | other than a limited liability
company, that is organized | ||||||
7 | and operated as a not-for-profit service enterprise
for | ||||||
8 | the benefit of persons 65 years of age or older if the | ||||||
9 | personal property
was not purchased by the enterprise for | ||||||
10 | the purpose of resale by the
enterprise.
| ||||||
11 | (11) Personal property sold to a governmental body, to | ||||||
12 | a corporation,
society, association, foundation, or | ||||||
13 | institution organized and operated
exclusively for | ||||||
14 | charitable, religious, or educational purposes, or to a
| ||||||
15 | not-for-profit corporation, society, association, | ||||||
16 | foundation, institution,
or organization that has no | ||||||
17 | compensated officers or employees and that is
organized | ||||||
18 | and operated primarily for the recreation of persons 55 | ||||||
19 | years of
age or older. A limited liability company may | ||||||
20 | qualify for the exemption under
this paragraph only if the | ||||||
21 | limited liability company is organized and operated
| ||||||
22 | exclusively for educational purposes. On and after July 1, | ||||||
23 | 1987, however, no
entity otherwise eligible for this | ||||||
24 | exemption shall make tax-free purchases
unless it has an | ||||||
25 | active identification number issued by the Department.
| ||||||
26 | (12) (Blank).
|
| |||||||
| |||||||
1 | (12-5) On and after July 1, 2003 and through June 30, | ||||||
2 | 2004, motor vehicles of the second division
with a gross | ||||||
3 | vehicle weight in excess of 8,000 pounds
that
are
subject | ||||||
4 | to the commercial distribution fee imposed under Section | ||||||
5 | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | ||||||
6 | 2004 and through June 30, 2005, the use in this State of | ||||||
7 | motor vehicles of the second division: (i) with a gross | ||||||
8 | vehicle weight rating in excess of 8,000 pounds; (ii) that | ||||||
9 | are subject to the commercial distribution fee imposed | ||||||
10 | under Section 3-815.1 of the Illinois Vehicle Code; and | ||||||
11 | (iii) that are primarily used for commercial purposes. | ||||||
12 | Through June 30, 2005, this
exemption applies to repair | ||||||
13 | and replacement parts added
after the
initial purchase of | ||||||
14 | such a motor vehicle if that motor vehicle is used in a
| ||||||
15 | manner that
would qualify for the rolling stock exemption | ||||||
16 | otherwise provided for in this
Act. For purposes of this | ||||||
17 | paragraph, "used for commercial purposes" means the | ||||||
18 | transportation of persons or property in furtherance of | ||||||
19 | any commercial or industrial enterprise whether for-hire | ||||||
20 | or not.
| ||||||
21 | (13) Proceeds from sales to owners, lessors, or
| ||||||
22 | shippers of
tangible personal property that is utilized by | ||||||
23 | interstate carriers for
hire for use as rolling stock | ||||||
24 | moving in interstate commerce
and equipment operated by a | ||||||
25 | telecommunications provider, licensed as a
common carrier | ||||||
26 | by the Federal Communications Commission, which is
|
| |||||||
| |||||||
1 | permanently installed in or affixed to aircraft moving in | ||||||
2 | interstate commerce.
| ||||||
3 | (14) Machinery and equipment that will be used by the | ||||||
4 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
5 | process of manufacturing or
assembling tangible personal | ||||||
6 | property for wholesale or retail sale or
lease, whether | ||||||
7 | the sale or lease is made directly by the manufacturer or | ||||||
8 | by
some other person, whether the materials used in the | ||||||
9 | process are owned by
the manufacturer or some other | ||||||
10 | person, or whether the sale or lease is made
apart from or | ||||||
11 | as an incident to the seller's engaging in the service
| ||||||
12 | occupation of producing machines, tools, dies, jigs, | ||||||
13 | patterns, gauges, or
other similar items of no commercial | ||||||
14 | value on special order for a particular
purchaser. The | ||||||
15 | exemption provided by this paragraph (14) does not include | ||||||
16 | machinery and equipment used in (i) the generation of | ||||||
17 | electricity for wholesale or retail sale; (ii) the | ||||||
18 | generation or treatment of natural or artificial gas for | ||||||
19 | wholesale or retail sale that is delivered to customers | ||||||
20 | through pipes, pipelines, or mains; or (iii) the treatment | ||||||
21 | of water for wholesale or retail sale that is delivered to | ||||||
22 | customers through pipes, pipelines, or mains. The | ||||||
23 | provisions of Public Act 98-583 are declaratory of | ||||||
24 | existing law as to the meaning and scope of this | ||||||
25 | exemption. Beginning on July 1, 2017, the exemption | ||||||
26 | provided by this paragraph (14) includes, but is not |
| |||||||
| |||||||
1 | limited to, graphic arts machinery and equipment, as | ||||||
2 | defined in paragraph (4) of this Section.
| ||||||
3 | (15) Proceeds of mandatory service charges separately | ||||||
4 | stated on
customers' bills for purchase and consumption of | ||||||
5 | food and beverages, to the
extent that the proceeds of the | ||||||
6 | service charge are in fact turned over as
tips or as a | ||||||
7 | substitute for tips to the employees who participate | ||||||
8 | directly
in preparing, serving, hosting or cleaning up the | ||||||
9 | food or beverage function
with respect to which the | ||||||
10 | service charge is imposed.
| ||||||
11 | (16) Tangible personal property sold to a purchaser if | ||||||
12 | the purchaser is exempt from use tax by operation of | ||||||
13 | federal law. This paragraph is exempt from the provisions | ||||||
14 | of Section 2-70.
| ||||||
15 | (17) Tangible personal property sold to a common | ||||||
16 | carrier by rail or
motor that
receives the physical | ||||||
17 | possession of the property in Illinois and that
transports | ||||||
18 | the property, or shares with another common carrier in the
| ||||||
19 | transportation of the property, out of Illinois on a | ||||||
20 | standard uniform bill
of lading showing the seller of the | ||||||
21 | property as the shipper or consignor of
the property to a | ||||||
22 | destination outside Illinois, for use outside Illinois.
| ||||||
23 | (18) Legal tender, currency, medallions, or gold or | ||||||
24 | silver coinage
issued by the State of Illinois, the | ||||||
25 | government of the United States of
America, or the | ||||||
26 | government of any foreign country, and bullion.
|
| |||||||
| |||||||
1 | (19) Until July 1, 2003, oil field exploration, | ||||||
2 | drilling, and production
equipment, including
(i) rigs and | ||||||
3 | parts of rigs, rotary rigs, cable tool
rigs, and workover | ||||||
4 | rigs, (ii) pipe and tubular goods, including casing and
| ||||||
5 | drill strings, (iii) pumps and pump-jack units, (iv) | ||||||
6 | storage tanks and flow
lines, (v) any individual | ||||||
7 | replacement part for oil field exploration,
drilling, and | ||||||
8 | production equipment, and (vi) machinery and equipment | ||||||
9 | purchased
for lease; but
excluding motor vehicles required | ||||||
10 | to be registered under the Illinois
Vehicle Code.
| ||||||
11 | (20) Photoprocessing machinery and equipment, | ||||||
12 | including repair and
replacement parts, both new and used, | ||||||
13 | including that manufactured on
special order, certified by | ||||||
14 | the purchaser to be used primarily for
photoprocessing, | ||||||
15 | and including photoprocessing machinery and equipment
| ||||||
16 | purchased for lease.
| ||||||
17 | (21) Until July 1, 2028, coal and aggregate | ||||||
18 | exploration, mining, off-highway hauling,
processing,
| ||||||
19 | maintenance, and reclamation equipment, including
| ||||||
20 | replacement parts and equipment, and including
equipment | ||||||
21 | purchased for lease, but excluding motor vehicles required | ||||||
22 | to be
registered under the Illinois Vehicle Code. The | ||||||
23 | changes made to this Section by Public Act 97-767 apply on | ||||||
24 | and after July 1, 2003, but no claim for credit or refund | ||||||
25 | is allowed on or after August 16, 2013 (the effective date | ||||||
26 | of Public Act 98-456)
for such taxes paid during the |
| |||||||
| |||||||
1 | period beginning July 1, 2003 and ending on August 16, | ||||||
2 | 2013 (the effective date of Public Act 98-456).
| ||||||
3 | (22) Until June 30, 2013, fuel and petroleum products | ||||||
4 | sold to or used by an air carrier,
certified by the carrier | ||||||
5 | to be used for consumption, shipment, or storage
in the | ||||||
6 | conduct of its business as an air common carrier, for a | ||||||
7 | flight
destined for or returning from a location or | ||||||
8 | locations
outside the United States without regard to | ||||||
9 | previous or subsequent domestic
stopovers.
| ||||||
10 | Beginning July 1, 2013, fuel and petroleum products | ||||||
11 | sold to or used by an air carrier, certified by the carrier | ||||||
12 | to be used for consumption, shipment, or storage in the | ||||||
13 | conduct of its business as an air common carrier, for a | ||||||
14 | flight that (i) is engaged in foreign trade or is engaged | ||||||
15 | in trade between the United States and any of its | ||||||
16 | possessions and (ii) transports at least one individual or | ||||||
17 | package for hire from the city of origination to the city | ||||||
18 | of final destination on the same aircraft, without regard | ||||||
19 | to a change in the flight number of that aircraft. | ||||||
20 | (23) A transaction in which the purchase order is | ||||||
21 | received by a florist
who is located outside Illinois, but | ||||||
22 | who has a florist located in Illinois
deliver the property | ||||||
23 | to the purchaser or the purchaser's donee in Illinois.
| ||||||
24 | (24) Fuel consumed or used in the operation of ships, | ||||||
25 | barges, or vessels
that are used primarily in or for the | ||||||
26 | transportation of property or the
conveyance of persons |
| |||||||
| |||||||
1 | for hire on rivers bordering on this State if the
fuel is | ||||||
2 | delivered by the seller to the purchaser's barge, ship, or | ||||||
3 | vessel
while it is afloat upon that bordering river.
| ||||||
4 | (25) Except as provided in item (25-5) of this | ||||||
5 | Section, a
motor vehicle sold in this State to a | ||||||
6 | nonresident even though the
motor vehicle is delivered to | ||||||
7 | the nonresident in this State, if the motor
vehicle is not | ||||||
8 | to be titled in this State, and if a drive-away permit
is | ||||||
9 | issued to the motor vehicle as provided in Section 3-603 | ||||||
10 | of the Illinois
Vehicle Code or if the nonresident | ||||||
11 | purchaser has vehicle registration
plates to transfer to | ||||||
12 | the motor vehicle upon returning to his or her home
state. | ||||||
13 | The issuance of the drive-away permit or having
the
| ||||||
14 | out-of-state registration plates to be transferred is | ||||||
15 | prima facie evidence
that the motor vehicle will not be | ||||||
16 | titled in this State.
| ||||||
17 | (25-5) The exemption under item (25) does not apply if | ||||||
18 | the state in which the motor vehicle will be titled does | ||||||
19 | not allow a reciprocal exemption for a motor vehicle sold | ||||||
20 | and delivered in that state to an Illinois resident but | ||||||
21 | titled in Illinois. The tax collected under this Act on | ||||||
22 | the sale of a motor vehicle in this State to a resident of | ||||||
23 | another state that does not allow a reciprocal exemption | ||||||
24 | shall be imposed at a rate equal to the state's rate of tax | ||||||
25 | on taxable property in the state in which the purchaser is | ||||||
26 | a resident, except that the tax shall not exceed the tax |
| |||||||
| |||||||
1 | that would otherwise be imposed under this Act. At the | ||||||
2 | time of the sale, the purchaser shall execute a statement, | ||||||
3 | signed under penalty of perjury, of his or her intent to | ||||||
4 | title the vehicle in the state in which the purchaser is a | ||||||
5 | resident within 30 days after the sale and of the fact of | ||||||
6 | the payment to the State of Illinois of tax in an amount | ||||||
7 | equivalent to the state's rate of tax on taxable property | ||||||
8 | in his or her state of residence and shall submit the | ||||||
9 | statement to the appropriate tax collection agency in his | ||||||
10 | or her state of residence. In addition, the retailer must | ||||||
11 | retain a signed copy of the statement in his or her | ||||||
12 | records. Nothing in this item shall be construed to | ||||||
13 | require the removal of the vehicle from this state | ||||||
14 | following the filing of an intent to title the vehicle in | ||||||
15 | the purchaser's state of residence if the purchaser titles | ||||||
16 | the vehicle in his or her state of residence within 30 days | ||||||
17 | after the date of sale. The tax collected under this Act in | ||||||
18 | accordance with this item (25-5) shall be proportionately | ||||||
19 | distributed as if the tax were collected at the 6.25% | ||||||
20 | general rate imposed under this Act.
| ||||||
21 | (25-7) Beginning on July 1, 2007, no tax is imposed | ||||||
22 | under this Act on the sale of an aircraft, as defined in | ||||||
23 | Section 3 of the Illinois Aeronautics Act, if all of the | ||||||
24 | following conditions are met: | ||||||
25 | (1) the aircraft leaves this State within 15 days | ||||||
26 | after the later of either the issuance of the final |
| |||||||
| |||||||
1 | billing for the sale of the aircraft, or the | ||||||
2 | authorized approval for return to service, completion | ||||||
3 | of the maintenance record entry, and completion of the | ||||||
4 | test flight and ground test for inspection, as | ||||||
5 | required by 14 CFR C.F.R. 91.407; | ||||||
6 | (2) the aircraft is not based or registered in | ||||||
7 | this State after the sale of the aircraft; and | ||||||
8 | (3) the seller retains in his or her books and | ||||||
9 | records and provides to the Department a signed and | ||||||
10 | dated certification from the purchaser, on a form | ||||||
11 | prescribed by the Department, certifying that the | ||||||
12 | requirements of this item (25-7) are met. The | ||||||
13 | certificate must also include the name and address of | ||||||
14 | the purchaser, the address of the location where the | ||||||
15 | aircraft is to be titled or registered, the address of | ||||||
16 | the primary physical location of the aircraft, and | ||||||
17 | other information that the Department may reasonably | ||||||
18 | require. | ||||||
19 | For purposes of this item (25-7): | ||||||
20 | "Based in this State" means hangared, stored, or | ||||||
21 | otherwise used, excluding post-sale customizations as | ||||||
22 | defined in this Section, for 10 or more days in each | ||||||
23 | 12-month period immediately following the date of the sale | ||||||
24 | of the aircraft. | ||||||
25 | "Registered in this State" means an aircraft | ||||||
26 | registered with the Department of Transportation, |
| |||||||
| |||||||
1 | Aeronautics Division, or titled or registered with the | ||||||
2 | Federal Aviation Administration to an address located in | ||||||
3 | this State. | ||||||
4 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
5 | Section 2-70.
| ||||||
6 | (26) Semen used for artificial insemination of | ||||||
7 | livestock for direct
agricultural production.
| ||||||
8 | (27) Horses, or interests in horses, registered with | ||||||
9 | and meeting the
requirements of any of the
Arabian Horse | ||||||
10 | Club Registry of America, Appaloosa Horse Club, American | ||||||
11 | Quarter
Horse Association, United States
Trotting | ||||||
12 | Association, or Jockey Club, as appropriate, used for
| ||||||
13 | purposes of breeding or racing for prizes. This item (27) | ||||||
14 | is exempt from the provisions of Section 2-70, and the | ||||||
15 | exemption provided for under this item (27) applies for | ||||||
16 | all periods beginning May 30, 1995, but no claim for | ||||||
17 | credit or refund is allowed on or after January 1, 2008 | ||||||
18 | (the effective date of Public Act 95-88)
for such taxes | ||||||
19 | paid during the period beginning May 30, 2000 and ending | ||||||
20 | on January 1, 2008 (the effective date of Public Act | ||||||
21 | 95-88).
| ||||||
22 | (28) Computers and communications equipment utilized | ||||||
23 | for any
hospital
purpose
and equipment used in the | ||||||
24 | diagnosis,
analysis, or treatment of hospital patients | ||||||
25 | sold to a lessor who leases the
equipment, under a lease of | ||||||
26 | one year or longer executed or in effect at the
time of the |
| |||||||
| |||||||
1 | purchase, to a
hospital
that has been issued an active tax | ||||||
2 | exemption identification number by the
Department under | ||||||
3 | Section 1g of this Act.
| ||||||
4 | (29) Personal property sold to a lessor who leases the
| ||||||
5 | property, under a
lease of one year or longer executed or | ||||||
6 | in effect at the time of the purchase,
to a governmental | ||||||
7 | body
that has been issued an active tax exemption | ||||||
8 | identification number by the
Department under Section 1g | ||||||
9 | of this Act.
| ||||||
10 | (30) Beginning with taxable years ending on or after | ||||||
11 | December
31, 1995
and
ending with taxable years ending on | ||||||
12 | or before December 31, 2004,
personal property that is
| ||||||
13 | donated for disaster relief to be used in a State or | ||||||
14 | federally declared
disaster area in Illinois or bordering | ||||||
15 | Illinois by a manufacturer or retailer
that is registered | ||||||
16 | in this State to a corporation, society, association,
| ||||||
17 | foundation, or institution that has been issued a sales | ||||||
18 | tax exemption
identification number by the Department that | ||||||
19 | assists victims of the disaster
who reside within the | ||||||
20 | declared disaster area.
| ||||||
21 | (31) Beginning with taxable years ending on or after | ||||||
22 | December
31, 1995 and
ending with taxable years ending on | ||||||
23 | or before December 31, 2004, personal
property that is | ||||||
24 | used in the performance of infrastructure repairs in this
| ||||||
25 | State, including but not limited to municipal roads and | ||||||
26 | streets, access roads,
bridges, sidewalks, waste disposal |
| |||||||
| |||||||
1 | systems, water and sewer line extensions,
water | ||||||
2 | distribution and purification facilities, storm water | ||||||
3 | drainage and
retention facilities, and sewage treatment | ||||||
4 | facilities, resulting from a State
or federally declared | ||||||
5 | disaster in Illinois or bordering Illinois when such
| ||||||
6 | repairs are initiated on facilities located in the | ||||||
7 | declared disaster area
within 6 months after the disaster.
| ||||||
8 | (32) Beginning July 1, 1999, game or game birds sold | ||||||
9 | at a "game breeding
and
hunting preserve area" as that | ||||||
10 | term is used
in the
Wildlife Code. This paragraph is | ||||||
11 | exempt from the provisions
of
Section 2-70.
| ||||||
12 | (33) A motor vehicle, as that term is defined in | ||||||
13 | Section 1-146
of the
Illinois Vehicle Code, that is | ||||||
14 | donated to a corporation, limited liability
company, | ||||||
15 | society, association, foundation, or institution that is | ||||||
16 | determined by
the Department to be organized and operated | ||||||
17 | exclusively for educational
purposes. For purposes of this | ||||||
18 | exemption, "a corporation, limited liability
company, | ||||||
19 | society, association, foundation, or institution organized | ||||||
20 | and
operated
exclusively for educational purposes" means | ||||||
21 | all tax-supported public schools,
private schools that | ||||||
22 | offer systematic instruction in useful branches of
| ||||||
23 | learning by methods common to public schools and that | ||||||
24 | compare favorably in
their scope and intensity with the | ||||||
25 | course of study presented in tax-supported
schools, and | ||||||
26 | vocational or technical schools or institutes organized |
| |||||||
| |||||||
1 | and
operated exclusively to provide a course of study of | ||||||
2 | not less than 6 weeks
duration and designed to prepare | ||||||
3 | individuals to follow a trade or to pursue a
manual, | ||||||
4 | technical, mechanical, industrial, business, or commercial
| ||||||
5 | occupation.
| ||||||
6 | (34) Beginning January 1, 2000, personal property, | ||||||
7 | including food, purchased
through fundraising events for | ||||||
8 | the benefit of a public or private elementary or
secondary | ||||||
9 | school, a group of those schools, or one or more school | ||||||
10 | districts if
the events are sponsored by an entity | ||||||
11 | recognized by the school district that
consists primarily | ||||||
12 | of volunteers and includes parents and teachers of the
| ||||||
13 | school children. This paragraph does not apply to | ||||||
14 | fundraising events (i) for
the benefit of private home | ||||||
15 | instruction or (ii) for which the fundraising
entity | ||||||
16 | purchases the personal property sold at the events from | ||||||
17 | another
individual or entity that sold the property for | ||||||
18 | the purpose of resale by the
fundraising entity and that | ||||||
19 | profits from the sale to the fundraising entity.
This | ||||||
20 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
21 | (35) Beginning January 1, 2000 and through December | ||||||
22 | 31, 2001, new or used
automatic vending machines that | ||||||
23 | prepare and serve hot food and beverages,
including | ||||||
24 | coffee, soup, and other items, and replacement parts for | ||||||
25 | these
machines. Beginning January 1, 2002 and through June | ||||||
26 | 30, 2003, machines
and parts for machines used in
|
| |||||||
| |||||||
1 | commercial, coin-operated amusement and vending business | ||||||
2 | if a use or occupation
tax is paid on the gross receipts | ||||||
3 | derived from the use of the commercial,
coin-operated | ||||||
4 | amusement and vending machines. This paragraph is exempt | ||||||
5 | from
the provisions of Section 2-70.
| ||||||
6 | (35-5) Beginning August 23, 2001 and through June 30, | ||||||
7 | 2016, food for human consumption that is to be consumed | ||||||
8 | off
the premises where it is sold (other than alcoholic | ||||||
9 | beverages, soft drinks,
and food that has been prepared | ||||||
10 | for immediate consumption) and prescription
and | ||||||
11 | nonprescription medicines, drugs, medical appliances, and | ||||||
12 | insulin, urine
testing materials, syringes, and needles | ||||||
13 | used by diabetics, for human use, when
purchased for use | ||||||
14 | by a person receiving medical assistance under Article V | ||||||
15 | of
the Illinois Public Aid Code who resides in a licensed | ||||||
16 | long-term care facility,
as defined in the Nursing Home | ||||||
17 | Care Act, or a licensed facility as defined in the ID/DD | ||||||
18 | Community Care Act, the MC/DD Act, or the Specialized | ||||||
19 | Mental Health Rehabilitation Act of 2013.
| ||||||
20 | (36) Beginning August 2, 2001, computers and | ||||||
21 | communications equipment
utilized for any hospital purpose | ||||||
22 | and equipment used in the diagnosis,
analysis, or | ||||||
23 | treatment of hospital patients sold to a lessor who leases | ||||||
24 | the
equipment, under a lease of one year or longer | ||||||
25 | executed or in effect at the
time of the purchase, to a | ||||||
26 | hospital that has been issued an active tax
exemption |
| |||||||
| |||||||
1 | identification number by the Department under Section 1g | ||||||
2 | of this Act.
This paragraph is exempt from the provisions | ||||||
3 | of Section 2-70.
| ||||||
4 | (37) Beginning August 2, 2001, personal property sold | ||||||
5 | to a lessor who
leases the property, under a lease of one | ||||||
6 | year or longer executed or in effect
at the time of the | ||||||
7 | purchase, to a governmental body that has been issued an
| ||||||
8 | active tax exemption identification number by the | ||||||
9 | Department under Section 1g
of this Act. This paragraph is | ||||||
10 | exempt from the provisions of Section 2-70.
| ||||||
11 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
12 | 2016, tangible personal property purchased
from an | ||||||
13 | Illinois retailer by a taxpayer engaged in centralized | ||||||
14 | purchasing
activities in Illinois who will, upon receipt | ||||||
15 | of the property in Illinois,
temporarily store the | ||||||
16 | property in Illinois (i) for the purpose of subsequently
| ||||||
17 | transporting it outside this State for use or consumption | ||||||
18 | thereafter solely
outside this State or (ii) for the | ||||||
19 | purpose of being processed, fabricated, or
manufactured | ||||||
20 | into, attached to, or incorporated into other tangible | ||||||
21 | personal
property to be transported outside this State and | ||||||
22 | thereafter used or consumed
solely outside this State. The | ||||||
23 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
24 | accordance with the Illinois Administrative Procedure Act, | ||||||
25 | issue a
permit to any taxpayer in good standing with the | ||||||
26 | Department who is eligible for
the exemption under this |
| |||||||
| |||||||
1 | paragraph (38). The permit issued under
this paragraph | ||||||
2 | (38) shall authorize the holder, to the extent and
in the | ||||||
3 | manner specified in the rules adopted under this Act, to | ||||||
4 | purchase
tangible personal property from a retailer exempt | ||||||
5 | from the taxes imposed by
this Act. Taxpayers shall | ||||||
6 | maintain all necessary books and records to
substantiate | ||||||
7 | the use and consumption of all such tangible personal | ||||||
8 | property
outside of the State of Illinois.
| ||||||
9 | (39) Beginning January 1, 2008, tangible personal | ||||||
10 | property used in the construction or maintenance of a | ||||||
11 | community water supply, as defined under Section 3.145 of | ||||||
12 | the Environmental Protection Act, that is operated by a | ||||||
13 | not-for-profit corporation that holds a valid water supply | ||||||
14 | permit issued under Title IV of the Environmental | ||||||
15 | Protection Act. This paragraph is exempt from the | ||||||
16 | provisions of Section 2-70.
| ||||||
17 | (40) Beginning January 1, 2010 and continuing through | ||||||
18 | December 31, 2024, materials, parts, equipment, | ||||||
19 | components, and furnishings incorporated into or upon an | ||||||
20 | aircraft as part of the modification, refurbishment, | ||||||
21 | completion, replacement, repair, or maintenance of the | ||||||
22 | aircraft. This exemption includes consumable supplies used | ||||||
23 | in the modification, refurbishment, completion, | ||||||
24 | replacement, repair, and maintenance of aircraft, but | ||||||
25 | excludes any materials, parts, equipment, components, and | ||||||
26 | consumable supplies used in the modification, replacement, |
| |||||||
| |||||||
1 | repair, and maintenance of aircraft engines or power | ||||||
2 | plants, whether such engines or power plants are installed | ||||||
3 | or uninstalled upon any such aircraft. "Consumable | ||||||
4 | supplies" include, but are not limited to, adhesive, tape, | ||||||
5 | sandpaper, general purpose lubricants, cleaning solution, | ||||||
6 | latex gloves, and protective films. This exemption applies | ||||||
7 | only to the sale of qualifying tangible personal property | ||||||
8 | to persons who modify, refurbish, complete, replace, or | ||||||
9 | maintain an aircraft and who (i) hold an Air Agency | ||||||
10 | Certificate and are empowered to operate an approved | ||||||
11 | repair station by the Federal Aviation Administration, | ||||||
12 | (ii) have a Class IV Rating, and (iii) conduct operations | ||||||
13 | in accordance with Part 145 of the Federal Aviation | ||||||
14 | Regulations. The exemption does not include aircraft | ||||||
15 | operated by a commercial air carrier providing scheduled | ||||||
16 | passenger air service pursuant to authority issued under | ||||||
17 | Part 121 or Part 129 of the Federal Aviation Regulations. | ||||||
18 | The changes made to this paragraph (40) by Public Act | ||||||
19 | 98-534 are declarative of existing law. It is the intent | ||||||
20 | of the General Assembly that the exemption under this | ||||||
21 | paragraph (40) applies continuously from January 1, 2010 | ||||||
22 | through December 31, 2024; however, no claim for credit or | ||||||
23 | refund is allowed for taxes paid as a result of the | ||||||
24 | disallowance of this exemption on or after January 1, 2015 | ||||||
25 | and prior to February 5, 2020 ( the effective date of | ||||||
26 | Public Act 101-629) this amendatory Act of the 101st |
| |||||||
| |||||||
1 | General Assembly . | ||||||
2 | (41) Tangible personal property sold to a | ||||||
3 | public-facilities corporation, as described in Section | ||||||
4 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
5 | constructing or furnishing a municipal convention hall, | ||||||
6 | but only if the legal title to the municipal convention | ||||||
7 | hall is transferred to the municipality without any | ||||||
8 | further consideration by or on behalf of the municipality | ||||||
9 | at the time of the completion of the municipal convention | ||||||
10 | hall or upon the retirement or redemption of any bonds or | ||||||
11 | other debt instruments issued by the public-facilities | ||||||
12 | corporation in connection with the development of the | ||||||
13 | municipal convention hall. This exemption includes | ||||||
14 | existing public-facilities corporations as provided in | ||||||
15 | Section 11-65-25 of the Illinois Municipal Code. This | ||||||
16 | paragraph is exempt from the provisions of Section 2-70. | ||||||
17 | (42) Beginning January 1, 2017 and through December | ||||||
18 | 31, 2026, menstrual pads, tampons, and menstrual cups. | ||||||
19 | (43) Merchandise that is subject to the Rental | ||||||
20 | Purchase Agreement Occupation and Use Tax. The purchaser | ||||||
21 | must certify that the item is purchased to be rented | ||||||
22 | subject to a rental purchase agreement, as defined in the | ||||||
23 | Rental Purchase Agreement Act, and provide proof of | ||||||
24 | registration under the Rental Purchase Agreement | ||||||
25 | Occupation and Use Tax Act. This paragraph is exempt from | ||||||
26 | the provisions of Section 2-70. |
| |||||||
| |||||||
1 | (44) Qualified tangible personal property used in the | ||||||
2 | construction or operation of a data center that has been | ||||||
3 | granted a certificate of exemption by the Department of | ||||||
4 | Commerce and Economic Opportunity, whether that tangible | ||||||
5 | personal property is purchased by the owner, operator, or | ||||||
6 | tenant of the data center or by a contractor or | ||||||
7 | subcontractor of the owner, operator, or tenant. Data | ||||||
8 | centers that would have qualified for a certificate of | ||||||
9 | exemption prior to January 1, 2020 had Public Act 101-31 | ||||||
10 | this amendatory Act of the 101st General Assembly been in | ||||||
11 | effect, may apply for and obtain an exemption for | ||||||
12 | subsequent purchases of computer equipment or enabling | ||||||
13 | software purchased or leased to upgrade, supplement, or | ||||||
14 | replace computer equipment or enabling software purchased | ||||||
15 | or leased in the original investment that would have | ||||||
16 | qualified. | ||||||
17 | The Department of Commerce and Economic Opportunity | ||||||
18 | shall grant a certificate of exemption under this item | ||||||
19 | (44) to qualified data centers as defined by Section | ||||||
20 | 605-1025 of the Department of Commerce and Economic | ||||||
21 | Opportunity Law of the
Civil Administrative Code of | ||||||
22 | Illinois. | ||||||
23 | For the purposes of this item (44): | ||||||
24 | "Data center" means a building or a series of | ||||||
25 | buildings rehabilitated or constructed to house | ||||||
26 | working servers in one physical location or multiple |
| |||||||
| |||||||
1 | sites within the State of Illinois. | ||||||
2 | "Qualified tangible personal property" means: | ||||||
3 | electrical systems and equipment; climate control and | ||||||
4 | chilling equipment and systems; mechanical systems and | ||||||
5 | equipment; monitoring and secure systems; emergency | ||||||
6 | generators; hardware; computers; servers; data storage | ||||||
7 | devices; network connectivity equipment; racks; | ||||||
8 | cabinets; telecommunications cabling infrastructure; | ||||||
9 | raised floor systems; peripheral components or | ||||||
10 | systems; software; mechanical, electrical, or plumbing | ||||||
11 | systems; battery systems; cooling systems and towers; | ||||||
12 | temperature control systems; other cabling; and other | ||||||
13 | data center infrastructure equipment and systems | ||||||
14 | necessary to operate qualified tangible personal | ||||||
15 | property, including fixtures; and component parts of | ||||||
16 | any of the foregoing, including installation, | ||||||
17 | maintenance, repair, refurbishment, and replacement of | ||||||
18 | qualified tangible personal property to generate, | ||||||
19 | transform, transmit, distribute, or manage electricity | ||||||
20 | necessary to operate qualified tangible personal | ||||||
21 | property; and all other tangible personal property | ||||||
22 | that is essential to the operations of a computer data | ||||||
23 | center. The term "qualified tangible personal | ||||||
24 | property" also includes building materials physically | ||||||
25 | incorporated into the qualifying data center. To | ||||||
26 | document the exemption allowed under this Section, the |
| |||||||
| |||||||
1 | retailer must obtain from the purchaser a copy of the | ||||||
2 | certificate of eligibility issued by the Department of | ||||||
3 | Commerce and Economic Opportunity. | ||||||
4 | This item (44) is exempt from the provisions of | ||||||
5 | Section 2-70. | ||||||
6 | (45) Beginning January 1, 2020 and through December | ||||||
7 | 31, 2020, sales of tangible personal property made by a | ||||||
8 | marketplace seller over a marketplace for which tax is due | ||||||
9 | under this Act but for which use tax has been collected and | ||||||
10 | remitted to the Department by a marketplace facilitator | ||||||
11 | under Section 2d of the Use Tax Act are exempt from tax | ||||||
12 | under this Act. A marketplace seller claiming this | ||||||
13 | exemption shall maintain books and records demonstrating | ||||||
14 | that the use tax on such sales has been collected and | ||||||
15 | remitted by a marketplace facilitator. Marketplace sellers | ||||||
16 | that have properly remitted tax under this Act on such | ||||||
17 | sales may file a claim for credit as provided in Section 6 | ||||||
18 | of this Act. No claim is allowed, however, for such taxes | ||||||
19 | for which a credit or refund has been issued to the | ||||||
20 | marketplace facilitator under the Use Tax Act, or for | ||||||
21 | which the marketplace facilitator has filed a claim for | ||||||
22 | credit or refund under the Use Tax Act. | ||||||
23 | (46) Beginning July 1, 2022, breast pumps, breast pump | ||||||
24 | collection and storage supplies, and breast pump kits. | ||||||
25 | This item (46) is exempt from the provisions of Section | ||||||
26 | 2-70. As used in this item (46): |
| |||||||
| |||||||
1 | "Breast pump" means an electrically controlled or | ||||||
2 | manually controlled pump device designed or marketed to be | ||||||
3 | used to express milk from a human breast during lactation, | ||||||
4 | including the pump device and any battery, AC adapter, or | ||||||
5 | other power supply unit that is used to power the pump | ||||||
6 | device and is packaged and sold with the pump device at the | ||||||
7 | time of sale. | ||||||
8 | "Breast pump collection and storage supplies" means | ||||||
9 | items of tangible personal property designed or marketed | ||||||
10 | to be used in conjunction with a breast pump to collect | ||||||
11 | milk expressed from a human breast and to store collected | ||||||
12 | milk until it is ready for consumption. | ||||||
13 | "Breast pump collection and storage supplies" | ||||||
14 | includes, but is not limited to: breast shields and breast | ||||||
15 | shield connectors; breast pump tubes and tubing adapters; | ||||||
16 | breast pump valves and membranes; backflow protectors and | ||||||
17 | backflow protector adaptors; bottles and bottle caps | ||||||
18 | specific to the operation of the breast pump; and breast | ||||||
19 | milk storage bags. | ||||||
20 | "Breast pump collection and storage supplies" does not | ||||||
21 | include: (1) bottles and bottle caps not specific to the | ||||||
22 | operation of the breast pump; (2) breast pump travel bags | ||||||
23 | and other similar carrying accessories, including ice | ||||||
24 | packs, labels, and other similar products; (3) breast pump | ||||||
25 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
26 | shells, and other similar products; and (5) creams, |
| |||||||
| |||||||
1 | ointments, and other similar products that relieve | ||||||
2 | breastfeeding-related symptoms or conditions of the | ||||||
3 | breasts or nipples, unless sold as part of a breast pump | ||||||
4 | kit that is pre-packaged by the breast pump manufacturer | ||||||
5 | or distributor. | ||||||
6 | "Breast pump kit" means a kit that: (1) contains no | ||||||
7 | more than a breast pump, breast pump collection and | ||||||
8 | storage supplies, a rechargeable battery for operating the | ||||||
9 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
10 | packs, and a breast pump carrying case; and (2) is | ||||||
11 | pre-packaged as a breast pump kit by the breast pump | ||||||
12 | manufacturer or distributor. | ||||||
13 | (47) (46) Tangible personal property sold by or on | ||||||
14 | behalf of the State Treasurer pursuant to the Revised | ||||||
15 | Uniform Unclaimed Property Act. This item (47) (46) is | ||||||
16 | exempt from the provisions of Section 2-70. | ||||||
17 | (48) Qualified tangible personal property used in the | ||||||
18 | construction or operation of a Mega Project for which a | ||||||
19 | certificate has been issued by the Department of Revenue | ||||||
20 | as described and defined in Division 22 of Article 10 of | ||||||
21 | the Property Tax Code, whether that tangible personal | ||||||
22 | property is purchased by the owner, operator, or tenant of | ||||||
23 | the mega project or by a contractor or subcontractor of | ||||||
24 | the owner, operator, or tenant.
For the purposes of this | ||||||
25 | item (48): | ||||||
26 | "Facility" means a building or series of buildings. |
| |||||||
| |||||||
1 | "Mega project" means a facility that is rehabilitated | ||||||
2 | or constructed as described in Division 22 of Article 10 | ||||||
3 | of the Property Tax Code. | ||||||
4 | "Qualified tangible personal property" means: | ||||||
5 | electrical systems and equipment; climate control and | ||||||
6 | chilling equipment and systems; mechanical systems and | ||||||
7 | equipment; monitoring and secure systems; emergency | ||||||
8 | generators; hardware; computers; servers; data storage | ||||||
9 | devices; network connectivity equipment; racks; cabinets; | ||||||
10 | telecommunications cabling infrastructure; raised floor | ||||||
11 | systems; peripheral components or systems; software; | ||||||
12 | mechanical, electrical, or plumbing systems; battery | ||||||
13 | systems; cooling systems and towers; temperature control | ||||||
14 | systems; other cabling; and other data center | ||||||
15 | infrastructure equipment and systems necessary to operate | ||||||
16 | qualified tangible personal property, including fixtures; | ||||||
17 | and component parts of any of the foregoing, including | ||||||
18 | installation, maintenance, repair, refurbishment, and | ||||||
19 | replacement of qualified tangible personal property to | ||||||
20 | generate, transform, transmit, distribute, or manage | ||||||
21 | electricity necessary to operate qualified tangible | ||||||
22 | personal property; and all other tangible personal | ||||||
23 | property that is essential to the operations of a mega | ||||||
24 | project. The term "qualified tangible personal property" | ||||||
25 | also includes building materials to be incorporated into | ||||||
26 | the mega project. To document the exemption allowed under |
| |||||||
| |||||||
1 | this Section, the retailer, contractor or subcontractor or | ||||||
2 | supplier must obtain from the purchaser a copy of the | ||||||
3 | certificate issued by the Department of Revenue for the | ||||||
4 | mega project as described and defined in Division 22 of | ||||||
5 | Article 10 of the Property Tax Code. | ||||||
6 | This item (48) is exempt from the provisions of | ||||||
7 | Section 2-70. | ||||||
8 | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; | ||||||
9 | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff. | ||||||
10 | 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22; | ||||||
11 | 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813, | ||||||
12 | eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
| ||||||
13 | Section 25. The Property Tax Code is amended by adding | ||||||
14 | Division 22 to Article 10 as follows:
| ||||||
15 | (35 ILCS 200/Art. 10 Div. 22 heading new) | ||||||
16 | Division 22. Mega projects | ||||||
17 | (35 ILCS 200/10-900 new) | ||||||
18 | Sec. 10-900. Findings. The State's economy is highly | ||||||
19 | vulnerable to other states that have major financial incentive | ||||||
20 | programs and competitive tax incentives. Certain businesses | ||||||
21 | and commercial operations that generate significant economic | ||||||
22 | activity bear a disproportionately high property tax burden | ||||||
23 | compared to their impact on government services and compared |
| |||||||
| |||||||
1 | to their positive economic benefits to the State and the local | ||||||
2 | economy and their derivative benefits to taxing districts. To | ||||||
3 | incentivize the significant capital investment and economic | ||||||
4 | activity of certain large-scale businesses and industrial and | ||||||
5 | commercial operations, the State finds that a valuation | ||||||
6 | procedure for real property taxes on special properties, known | ||||||
7 | as mega projects, will reduce barriers to investment and | ||||||
8 | economic activity in Illinois. The General Assembly finds that | ||||||
9 | it is in the best interest of Illinois to establish a new | ||||||
10 | category of valuation for mega projects that recognizes their | ||||||
11 | complexity and encourages local development at underutilized | ||||||
12 | properties.
| ||||||
13 | (35 ILCS 200/10-910 new) | ||||||
14 | Sec. 10-910. Mega Project Assessment Freeze and Payment | ||||||
15 | Law; definitions. This Division 22 may be cited as the Mega | ||||||
16 | Project Assessment Freeze and Payment Law. | ||||||
17 | As used in this Division: | ||||||
18 | "Assessment officer" means the chief county assessment | ||||||
19 | officer of the county in which the mega project is located. | ||||||
20 | "Assessment period" means the period beginning on the | ||||||
21 | first day of the calendar year after the calendar year in which | ||||||
22 | a mega project is placed in service and ending on the date when | ||||||
23 | the mega project no longer qualifies as a mega project under | ||||||
24 | this Division. | ||||||
25 | "Base tax year" means the tax year prior to the first |
| |||||||
| |||||||
1 | calendar year during which the Department issues a mega | ||||||
2 | project certificate under this Division. | ||||||
3 | "Base year" means: | ||||||
4 | (1) the calendar year prior to the calendar year in | ||||||
5 | which the Department issues the mega project certificate, | ||||||
6 | if the Department issues a mega project certificate for a | ||||||
7 | project located on the property without granting | ||||||
8 | preliminary approval for the project pursuant to Section | ||||||
9 | 10-940; or | ||||||
10 | (2) the calendar year prior to the calendar year in | ||||||
11 | which the Department grants that preliminary approval, if | ||||||
12 | the Department grants preliminary approval pursuant to | ||||||
13 | Section 10-940 for a mega project located on the property. | ||||||
14 | "Base year valuation" means the assessed value, in the | ||||||
15 | base year, of the property comprising the mega project. | ||||||
16 | "Company" means one or more entities whose aggregate | ||||||
17 | investment in the mega project meets the minimum investment | ||||||
18 | required under this Division. The term company shall include a | ||||||
19 | company affiliate unless the context clearly indicates | ||||||
20 | otherwise. | ||||||
21 | "Company affiliate" means an entity that joins with or is | ||||||
22 | an affiliate of a company and that participates in the | ||||||
23 | investment in, or financing of, a mega project. | ||||||
24 | "Department" means the Department of Revenue. | ||||||
25 | "Eligible costs" means all costs incurred by or on behalf | ||||||
26 | of, or allocated to, a company, prior to the Department's |
| |||||||
| |||||||
1 | issuance of the mega project certificate or during the | ||||||
2 | investment period, to create or construct a mega project. | ||||||
3 | "Eligible costs" includes, without limitation: | ||||||
4 | (1) the purchase, site preparation, renovation, | ||||||
5 | rehabilitation and construction of land, buildings, | ||||||
6 | structures, equipment and furnishings used for or in the | ||||||
7 | mega project; | ||||||
8 | (2) any goods or services for the mega project that | ||||||
9 | are purchased and capitalized under generally accepted | ||||||
10 | accounting principles, including any organizational costs | ||||||
11 | and research and development costs incurred in Illinois; | ||||||
12 | (3) capitalized lease costs for land, buildings, | ||||||
13 | structures and equipment valued at their present value | ||||||
14 | using the interest rate at which the company borrows funds | ||||||
15 | prevailing at the time the company entered into the lease; | ||||||
16 | (4) infrastructure development costs; | ||||||
17 | (5) debt service and project financing costs; | ||||||
18 | (6) non-capitalized research and development costs; | ||||||
19 | (7) job training and education costs; | ||||||
20 | (8) lease and relocation costs; and | ||||||
21 | (9) amounts expended by a company or company affiliate | ||||||
22 | as a non-responsible party pursuant to a voluntary program | ||||||
23 | of site remediation, including amounts expended to obtain | ||||||
24 | a certification of completion, if completion of | ||||||
25 | remediation is certified by the Illinois Environmental | ||||||
26 | Protection Agency. |
| |||||||
| |||||||
1 | "Entity" means a sole proprietor, partnership, firm, | ||||||
2 | corporation, limited liability company, association, or other | ||||||
3 | business enterprise. | ||||||
4 | "Incentive agreement" means an agreement between a company | ||||||
5 | and a local municipality obligating the company to make the | ||||||
6 | special payment under this Division, in addition to paying | ||||||
7 | property taxes, during the incentive period for a mega | ||||||
8 | project. | ||||||
9 | "Incentive period" means the period beginning on the first | ||||||
10 | day of the calendar year after the calendar year in which the | ||||||
11 | mega project is placed in service and each calendar year | ||||||
12 | thereafter until the earlier of (i) the expiration or | ||||||
13 | termination of the incentive agreement or (ii) the revocation | ||||||
14 | of the mega project certificate. | ||||||
15 | "Inducement resolution" means a resolution adopted by the | ||||||
16 | local municipality setting forth the commitment of the local | ||||||
17 | municipality to enter into an incentive agreement. | ||||||
18 | "Investment period" means the period ending 7 years after | ||||||
19 | the date on which the Department issues the mega project | ||||||
20 | certificate, or such other longer period of time as the local | ||||||
21 | municipality and the company may agree to, not to exceed an | ||||||
22 | initial period of 10 years. | ||||||
23 | "Local municipality" means the city, village, or | ||||||
24 | incorporated town in which the mega project is located or, if | ||||||
25 | the mega project is located in an unincorporated area, the | ||||||
26 | county in which the mega project is located. |
| |||||||
| |||||||
1 | "Mega project" means a project that satisfies the minimum | ||||||
2 | investment, investment period, and other requirements of this | ||||||
3 | Division. | ||||||
4 | "Mega project certificate" means a certificate issued by | ||||||
5 | the Department that authorizes an assessment freeze as | ||||||
6 | provided in this Division. | ||||||
7 | "Minimum investment" means an investment in the mega | ||||||
8 | project of at least $500,000,000 in eligible costs within the | ||||||
9 | investment period. | ||||||
10 | "Minority person" means a person who is a citizen or | ||||||
11 | lawful permanent resident of the United States and who is any | ||||||
12 | of the following: | ||||||
13 | (1) American Indian or Alaska Native (a person having | ||||||
14 | origins in any of the original peoples of North and South | ||||||
15 | America, including Central America, and who maintains | ||||||
16 | tribal affiliation or community attachment). | ||||||
17 | (2) Asian (a person having origins in any of the | ||||||
18 | original peoples of the Far East, Southeast Asia, or the | ||||||
19 | Indian subcontinent, including, but not limited to, | ||||||
20 | Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, | ||||||
21 | the Philippine Islands, Thailand, and Vietnam). | ||||||
22 | (3) Black or African American (a person having origins | ||||||
23 | in any of the black racial groups of Africa). | ||||||
24 | (4) Hispanic or Latino (a person of Cuban, Mexican, | ||||||
25 | Puerto Rican, South or Central American, or other Spanish | ||||||
26 | culture or origin, regardless of race). |
| |||||||
| |||||||
1 | (5) Native Hawaiian or Other Pacific Islander (a | ||||||
2 | person having origins in any of the original peoples of | ||||||
3 | Hawaii, Guam, Samoa, or other Pacific Islands). | ||||||
4 | "Minority-owned business" means a business that is at | ||||||
5 | least 51% owned by one or more minority persons, or in the case | ||||||
6 | of a corporation, at least 51% of the stock in which is owned | ||||||
7 | by one or more minority persons; and the management and daily | ||||||
8 | business operations of which are controlled by one or more of | ||||||
9 | the minority individuals who own it. | ||||||
10 | "Placed in service" means that construction of the mega | ||||||
11 | project is substantially complete, which may be evidenced by | ||||||
12 | issuance of a certificate of occupancy for the mega project by | ||||||
13 | the local municipality or any other governmental body having | ||||||
14 | jurisdiction over construction of the mega project or, if no | ||||||
15 | certificate of occupancy is required as to the mega project, | ||||||
16 | commencement of operations at the mega project site. | ||||||
17 | "Project" means land, buildings, and other improvements on | ||||||
18 | the land, including water, sewage treatment and disposal | ||||||
19 | facilities, air pollution control facilities, and all other | ||||||
20 | machinery, apparatus, equipment, office facilities, related | ||||||
21 | infrastructure, and furnishings which are considered | ||||||
22 | necessary, suitable, or useful by a company and comprise the | ||||||
23 | mega project, including all such property subject to | ||||||
24 | assessment under the Property Tax Code. | ||||||
25 | "Special payment" means the annual amount paid in addition | ||||||
26 | to property taxes paid during the incentive period as provided |
| |||||||
| |||||||
1 | in the incentive agreement. | ||||||
2 | "Taxing district" has the meaning set forth in Section | ||||||
3 | 1-150. | ||||||
4 | "Termination date" means the last day of a calendar year | ||||||
5 | that is no later than the 23rd year following the first | ||||||
6 | calendar year in which a mega project is placed in service. A | ||||||
7 | company may apply to the local municipality prior to the | ||||||
8 | termination date for an extension of the termination date | ||||||
9 | beyond the 23rd year for up to 17 additional years, for a total | ||||||
10 | of 40 years. The corporate authorities of the local | ||||||
11 | municipality shall approve an extension by resolution upon a | ||||||
12 | finding of substantial public benefit. A copy of the | ||||||
13 | resolution must be delivered to the Department within 30 days | ||||||
14 | of the date the resolution was adopted. If the incentive | ||||||
15 | agreement is terminated under Section 10-937, then the | ||||||
16 | termination date is the date the agreement is terminated.
| ||||||
17 | (35 ILCS 200/10-915 new) | ||||||
18 | Sec. 10-915. Valuation during incentive period; | ||||||
19 | eligibility. | ||||||
20 | (a) Property certified by the Department as mega project | ||||||
21 | property pursuant to this Division is eligible for an | ||||||
22 | assessment freeze, as provided in this Division, eliminating | ||||||
23 | from consideration, for assessment purposes during the | ||||||
24 | incentive period, the value added to the property by the | ||||||
25 | project and limiting the total valuation of the property |
| |||||||
| |||||||
1 | during the incentive period to the base year valuation. If the | ||||||
2 | company does not anticipate completing the project within the | ||||||
3 | investment period, then the local municipality may approve one | ||||||
4 | or more extensions of time to complete the project. However, | ||||||
5 | the local municipality may not extend the project for a period | ||||||
6 | that exceeds 5 years after the last day of the investment | ||||||
7 | period. Unless approved as part of the original incentive | ||||||
8 | agreement, the corporate authorities may approve an extension | ||||||
9 | under this subsection by resolution, a copy of which must be | ||||||
10 | delivered to the Department within 30 days after the date the | ||||||
11 | resolution is adopted. | ||||||
12 | (b) To qualify for a mega project certificate, the company | ||||||
13 | must: | ||||||
14 | (1) make the minimum investment in the mega project | ||||||
15 | during the investment period; minimum investment | ||||||
16 | requirements shall be construed broadly for purposes of | ||||||
17 | this Division; | ||||||
18 | (2) enter into an incentive agreement with the local | ||||||
19 | municipality as described in this Division; | ||||||
20 | (3) enter into a project labor agreement with the | ||||||
21 | applicable local building trades council prior to the | ||||||
22 | commencement of any demolition, building construction, or | ||||||
23 | building renovation related to the project; and | ||||||
24 | (4) establish the goal of awarding 20% of the total | ||||||
25 | dollar amount of contracts that are related to the project | ||||||
26 | and are awarded by the company during each calendar year |
| |||||||
| |||||||
1 | to minority-owned businesses. | ||||||
2 | (c) For purposes of this Division, if a single company | ||||||
3 | enters into a financing arrangement of the type described in | ||||||
4 | subsection (b) of Section 10-950, the investment in or | ||||||
5 | financing of the property by a developer, lessor, financing | ||||||
6 | entity, or other third party in accordance with this | ||||||
7 | arrangement is considered investment by the company. | ||||||
8 | Investment by a related person to the company is considered | ||||||
9 | investment by the company.
| ||||||
10 | (35 ILCS 200/10-920 new) | ||||||
11 | Sec. 10-920. Incentive agreement; assessment freeze for | ||||||
12 | mega projects; incentive period; inducement resolution; | ||||||
13 | location of the project; criteria to qualify. | ||||||
14 | (a) To obtain the benefits provided in this Division, the | ||||||
15 | company shall apply in writing to the local municipality to | ||||||
16 | enter into an incentive agreement with the municipality, in | ||||||
17 | the form and manner required by the local municipality, and | ||||||
18 | shall certify to the facts asserted in the application. | ||||||
19 | (b) The corporate authorities of the local municipality, | ||||||
20 | prior to entering into an incentive agreement under this | ||||||
21 | Section, shall hold a public hearing to consider the | ||||||
22 | application. The amount and terms of the proposed special | ||||||
23 | payment and the duration of the incentive agreement shall be | ||||||
24 | considered at the public hearing. | ||||||
25 | (c) Copies of the completed application shall be provided |
| |||||||
| |||||||
1 | to each taxing district for which property taxes were assessed | ||||||
2 | on the property for the immediately preceding tax year. Those | ||||||
3 | copies shall be provided at least 30 days prior to the | ||||||
4 | scheduled public hearing at which the corporate authorities of | ||||||
5 | the local municipality will consider the application. | ||||||
6 | (d) The company and the local municipality shall enter | ||||||
7 | into an incentive agreement requiring the special payment | ||||||
8 | described in Section 10-925. The corporate authorities of the | ||||||
9 | local municipality shall adopt an ordinance approving the | ||||||
10 | incentive agreement. | ||||||
11 | (e) If an incentive agreement is not executed within 5 | ||||||
12 | years after the local municipality's adoption of an inducement | ||||||
13 | resolution, expenditures incurred by the company more than 5 | ||||||
14 | years prior to the execution of the incentive agreement shall | ||||||
15 | not qualify as part of the minimum investment. | ||||||
16 | (f) To be eligible to enter into an incentive agreement | ||||||
17 | under this Division, the company must commit to a project that | ||||||
18 | meets the minimum investment set forth in this Division.
| ||||||
19 | (35 ILCS 200/10-925 new) | ||||||
20 | Sec. 10-925. Contents of incentive agreement. | ||||||
21 | (a) The incentive agreement under Section 10-920 must | ||||||
22 | require the company to pay, or be responsible for the payment | ||||||
23 | of, an annual special payment to the local municipality, | ||||||
24 | beginning with the first tax year for which the assessment | ||||||
25 | freeze under this Division is applied to the mega project. The |
| |||||||
| |||||||
1 | amount of the special payment shall be established by the | ||||||
2 | local municipality in the incentive agreement and may be a | ||||||
3 | fixed amount for the duration of the incentive period or may be | ||||||
4 | subject to adjustment (downward or upward) based on factors | ||||||
5 | memorialized in the incentive agreement. | ||||||
6 | (b) The incentive agreement shall obligate the company to | ||||||
7 | operate the mega project at the designated project location | ||||||
8 | for a minimum of 20 years. | ||||||
9 | (c) The incentive agreement may contain such other terms | ||||||
10 | and conditions as are mutually agreeable to the local | ||||||
11 | municipality and the company and are consistent with the | ||||||
12 | requirements of this Division, including, without limitation, | ||||||
13 | operational and job creation requirements. | ||||||
14 | (d) In addition, all incentive agreements entered into | ||||||
15 | pursuant to Section 10-920 must include, as the first portion | ||||||
16 | of the document, a recapitulation of the remaining contents of | ||||||
17 | the document which includes, but is not limited to, the | ||||||
18 | following: | ||||||
19 | (1) the legal name of each party to the agreement; | ||||||
20 | (2) the street address of the project and the property | ||||||
21 | subject to the agreement; | ||||||
22 | (3) the agreed minimum investment; | ||||||
23 | (4) the term of the agreement; | ||||||
24 | (5) a schedule showing the amount of the special | ||||||
25 | payment and its calculation for each year of the | ||||||
26 | agreement; |
| |||||||
| |||||||
1 | (6) a schedule showing the amount to be distributed | ||||||
2 | annually to each affected taxing district, which amount | ||||||
3 | shall be a percentage of the special payment equal to the | ||||||
4 | taxing district's proportionate share of property taxes | ||||||
5 | due and payable for the base tax year; | ||||||
6 | (7) any other feature or aspect of the agreement which | ||||||
7 | may affect the calculation of items (5) and (6) of this | ||||||
8 | subsection; and | ||||||
9 | (8) the party or parties to the agreement who are | ||||||
10 | responsible for updating the information contained in the | ||||||
11 | summary document.
| ||||||
12 | (35 ILCS 200/10-930 new) | ||||||
13 | Sec. 10-930. Installment bills; distribution of special | ||||||
14 | payments. | ||||||
15 | (a) The local municipality shall prepare a bill for each | ||||||
16 | installment of the special payment according to the schedule | ||||||
17 | set forth in paragraph (5) of subsection (d) of Section | ||||||
18 | 10-925, or as modified pursuant to paragraph (7) of subsection | ||||||
19 | (d) of Section 10-925, and that payment must be distributed to | ||||||
20 | the affected taxing entities according to the schedule in | ||||||
21 | paragraph (6) of subsection (d) of Section 10-925 or as | ||||||
22 | modified in paragraph (7) of subsection (d) of Section 10-925. | ||||||
23 | (b) Distribution to taxing districts of the special | ||||||
24 | payments associated with a mega project must be made within 30 | ||||||
25 | days after receipt by the local municipality of the special |
| |||||||
| |||||||
1 | payment amounts. | ||||||
2 | (c) Misallocations of the distribution of the special | ||||||
3 | payments may be corrected by adjusting later distributions, | ||||||
4 | but these adjustments must be made in the next succeeding year | ||||||
5 | following identification and resolution of the misallocation. | ||||||
6 | To the extent that distributions have been made improperly in | ||||||
7 | previous years, claims for adjustment must be made within one | ||||||
8 | year of the distribution.
| ||||||
9 | (35 ILCS 200/10-935 new) | ||||||
10 | Sec. 10-935. Use of revenues. A taxing district that | ||||||
11 | receives and retains revenues from a special payment under | ||||||
12 | this Division may use all or a portion of the revenues for the | ||||||
13 | purposes of financing the issuance of revenue bonds.
| ||||||
14 | (35 ILCS 200/10-937 new) | ||||||
15 | Sec. 10-937. Termination of incentive agreement; automatic | ||||||
16 | termination; minimum level of investment required to remain | ||||||
17 | qualified for assessment freeze. | ||||||
18 | (a) The local municipality and the company may mutually | ||||||
19 | agree to terminate the incentive agreement at any time. From | ||||||
20 | the date of termination, the mega project is subject to | ||||||
21 | assessment on the basis of the then current fair cash value. | ||||||
22 | (b) An incentive agreement shall be terminated if the | ||||||
23 | company fails to satisfy the minimum investment level provided | ||||||
24 | in this Division. If the incentive agreement is terminated |
| |||||||
| |||||||
1 | under this subsection, the mega project is subject to | ||||||
2 | assessment on the basis of the then current fair cash value | ||||||
3 | beginning in the tax year during which the termination occurs. | ||||||
4 | (c) An incentive agreement shall terminate if, at any | ||||||
5 | time, the company no longer has the minimum level of | ||||||
6 | investment as provided in this Division, without regard to | ||||||
7 | depreciation.
| ||||||
8 | (35 ILCS 200/10-940 new) | ||||||
9 | Sec. 10-940. Mega project applications; certification as a | ||||||
10 | mega project and revocation of certification. | ||||||
11 | (a) The Department shall receive applications for mega | ||||||
12 | project certificates under this Division in a form and manner | ||||||
13 | provided by the Department by rule. The Department shall | ||||||
14 | promptly notify the assessment officer when the Department | ||||||
15 | receives an application under this Section. The Department's | ||||||
16 | rules shall provide that an applicant may request preliminary | ||||||
17 | approval of the mega project before the project begins, before | ||||||
18 | the applicant has entered into a fully executed incentive | ||||||
19 | agreement with the local municipality, or before the project | ||||||
20 | has been placed in service. | ||||||
21 | (b) An applicant for a mega project certificate under this | ||||||
22 | Division must provide evidence to the Department of a fully | ||||||
23 | executed incentive agreement between the company and the local | ||||||
24 | municipality as described in this Division. | ||||||
25 | (c) An applicant for a mega project certificate under this |
| |||||||
| |||||||
1 | Division must provide evidence to the Department of a fully | ||||||
2 | executed project labor agreement entered into with the | ||||||
3 | applicable local building trades council prior to the | ||||||
4 | commencement of any demolition, building construction, or | ||||||
5 | building renovation at the project. If the demolition, | ||||||
6 | building construction, or building renovation begins after the | ||||||
7 | application is approved, then the applicant must transmit a | ||||||
8 | copy of the fully executed project labor agreement to the | ||||||
9 | Department as soon as possible after the agreement is | ||||||
10 | executed. | ||||||
11 | (d) An applicant for a mega project certificate under this | ||||||
12 | Division must provide evidence to the Department that the | ||||||
13 | company has established the goal of awarding 20% of the total | ||||||
14 | dollar amount of contracts awarded during each calendar year | ||||||
15 | by the company, that are related to the project, to | ||||||
16 | minority-owned businesses. | ||||||
17 | (e) The Department shall approve an application for a mega | ||||||
18 | project certificate if the Department finds that the project | ||||||
19 | meets the requirements of this Division. | ||||||
20 | (f) Upon approval of the application, the Department shall | ||||||
21 | issue a mega project certificate to the applicant and transmit | ||||||
22 | a copy to the assessment officer. The certificate shall | ||||||
23 | identify the property on which the mega project is located. | ||||||
24 | (g) For each calendar year following issuance of the mega | ||||||
25 | project certificate, until the minimum investment requirements | ||||||
26 | have been met and the mega project has been placed in service, |
| |||||||
| |||||||
1 | the company shall deliver a report to the Department on the | ||||||
2 | status of construction or creation of the mega project and the | ||||||
3 | amount of minimum investment made in the mega project during | ||||||
4 | the preceding calendar year. If the Department determines, in | ||||||
5 | accordance with the Administrative Review Law and the Illinois | ||||||
6 | Administrative Procedure Act, that a project for which a | ||||||
7 | certificate has been issued has not met the minimum investment | ||||||
8 | requirements of this Division within the investment period, | ||||||
9 | the Department shall revoke the certificate by written notice | ||||||
10 | to the taxpayer of record and transmit a copy of the revocation | ||||||
11 | to the assessment officer. | ||||||
12 | (h) If the local municipality notifies the Department that | ||||||
13 | the incentive agreement between the company and the local | ||||||
14 | municipality has been terminated, the Department shall revoke | ||||||
15 | the certificate by written notice to the taxpayer of record | ||||||
16 | and transmit a copy of the revocation to the assessment | ||||||
17 | officer.
| ||||||
18 | (35 ILCS 200/10-945 new) | ||||||
19 | Sec. 10-945. Computation of valuation. | ||||||
20 | (a) Upon receipt of the mega project certificate from the | ||||||
21 | Department, the assessment officer shall determine the base | ||||||
22 | year valuation and shall make a notation on each statement of | ||||||
23 | assessment during the assessment period that the valuation of | ||||||
24 | the project is based upon the issuance of a mega project | ||||||
25 | certificate. |
| |||||||
| |||||||
1 | (b) Upon revocation of a mega project certificate, the | ||||||
2 | assessment officer shall compute the assessed valuation of the | ||||||
3 | project on the basis of the then current fair cash value of the | ||||||
4 | property.
| ||||||
5 | (35 ILCS 200/10-950 new) | ||||||
6 | Sec. 10-950. Transfers of interest in a mega project; | ||||||
7 | sale-leaseback arrangement; requirements. | ||||||
8 | (a) Subject to the terms of the incentive agreement | ||||||
9 | between the company and the local municipality, ownership of | ||||||
10 | or any interest in the mega project and any and all related | ||||||
11 | project property, including, without limitation, transfers of | ||||||
12 | indirect beneficial interests and equity interests in a | ||||||
13 | company owning a mega project, shall not affect the assessment | ||||||
14 | freeze or the validity of the mega project certificate issued | ||||||
15 | under this Division. Notwithstanding the provisions of this | ||||||
16 | subsection, the incentive agreement shall be a covenant | ||||||
17 | running with the land. | ||||||
18 | (b) A company may enter into lending, financing, security, | ||||||
19 | leasing, or similar arrangements, or a succession of such | ||||||
20 | arrangements, with a financing entity concerning all or part | ||||||
21 | of a project including, without limitation, a sale-leaseback | ||||||
22 | arrangement, equipment lease, build-to-suit lease, synthetic | ||||||
23 | lease, nordic lease, defeased tax benefit, or transfer lease, | ||||||
24 | an assignment, sublease, or similar arrangement, or succession | ||||||
25 | of those arrangements, with one or more financing entities |
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1 | concerning all or part of a project, regardless of the | ||||||
2 | identity of the income tax or fee owner of the mega project. | ||||||
3 | Neither the original transfer to the financing entity nor the | ||||||
4 | later transfer from the financing entity back to the company, | ||||||
5 | pursuant to terms in the sale-leaseback agreement, shall | ||||||
6 | affect the assessment freeze or the validity of the mega | ||||||
7 | project certificate issued under this Division, regardless of | ||||||
8 | whether the income tax basis is changed for income tax | ||||||
9 | purposes. | ||||||
10 | (c) The Department must receive notice of all transfers | ||||||
11 | undertaken with respect to other projects to effect a | ||||||
12 | financing. Notice shall be made in writing within 60 days | ||||||
13 | after the transfer, identifying each transferee and containing | ||||||
14 | other information required by the Department with the | ||||||
15 | appropriate returns. Failure to meet this notice requirement | ||||||
16 | does not adversely affect the assessment freeze.
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17 | (35 ILCS 200/10-955 new) | ||||||
18 | Sec. 10-955. Minimum investment by company affiliates. To | ||||||
19 | be eligible for the benefits of this Division, a company must | ||||||
20 | invest the minimum investment. Investments by company | ||||||
21 | affiliates during the investment period may be applied toward | ||||||
22 | the minimum investment under this Division regardless of | ||||||
23 | whether the company affiliate was part of the project. To | ||||||
24 | qualify for the assessment freeze, the minimum investments | ||||||
25 | pursuant must be at the mega project.
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1 | (35 ILCS 200/10-960 new) | ||||||
2 | Sec. 10-960. Projects to be valued at fair cash value for | ||||||
3 | purposes of bonded indebtedness and limitations on property | ||||||
4 | tax extensions. Projects to which an assessment freeze applies | ||||||
5 | pursuant to this Division shall be valued at their fair cash | ||||||
6 | value for purposes of calculating a municipality's general | ||||||
7 | obligation bond limits and a taxing district's limitation on | ||||||
8 | tax extensions.
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9 | (35 ILCS 200/10-965 new) | ||||||
10 | Sec. 10-965. Abatements. Any taxing district, upon a | ||||||
11 | majority vote of its governing authority, may, after the | ||||||
12 | determination of the assessed valuation as set forth in this | ||||||
13 | Division, order the clerk of the appropriate municipality or | ||||||
14 | county to abate any portion of real property taxes otherwise | ||||||
15 | levied or extended by the taxing district on a mega project.
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16 | (35 ILCS 200/10-970 new) | ||||||
17 | Sec. 10-970. Filing of returns, contracts, and other | ||||||
18 | information; due date of payments and returns. | ||||||
19 | (a) The company and the local municipality shall file | ||||||
20 | notices, reports, and other information as required by the | ||||||
21 | Department. | ||||||
22 | (b) Special payments are due at the same time as property | ||||||
23 | tax payments and property tax returns are due for the mega |
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1 | project property. | ||||||
2 | (c) Failure to make a timely special payment results in | ||||||
3 | the assessment of penalties as if the payment were a | ||||||
4 | delinquent property tax payment or return. | ||||||
5 | (d) Within 30 days after the date of execution of an | ||||||
6 | incentive agreement, a copy of the incentive agreement must be | ||||||
7 | filed with the Department, the county assessor, and the county | ||||||
8 | auditor for the county in which the mega project is located.
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9 | (35 ILCS 200/10-980 new) | ||||||
10 | Sec. 10-980. Rules. The Department may issue rulings and | ||||||
11 | adopt rules as necessary to carry out the purpose of this | ||||||
12 | Division.
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13 | (35 ILCS 200/10-990 new) | ||||||
14 | Sec. 10-990. Invalidity. If all or any part of this | ||||||
15 | Division is determined to be unconstitutional or otherwise | ||||||
16 | unenforceable by a court of competent jurisdiction, a company | ||||||
17 | has 180 days from the date of the determination to transfer | ||||||
18 | title to a mega project to an authorized economic development | ||||||
19 | authority, which may qualify for property tax assessment under | ||||||
20 | this Division or which may be exempt from property taxes.
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21 | Section 97. Severability. The provisions of this Act are | ||||||
22 | severable under Section 1.31 of the Statute on Statutes.
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23 | Section 99. Effective date. This Act takes effect June 1, |
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1 | 2023.
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