2023 Illinois Compiled Statutes › Chapter 35 - REVENUE › 35 ILCS 115/ - Service Occupation Tax Act.

(35 ILCS 115/1) (from Ch. 120, par. 439.101)
Sec. 1. 
		
		This Act shall be known and may be cited as the "Service Occupation
Tax Act", and the tax imposed by this Act may be referred to as the
"Service Occupation Tax".
(Source: Laws 1961, p. 1745.)
(35 ILCS 115/2) (from Ch. 120, par. 439.102)
Sec. 2. In this Act:
"Transfer" means any transfer of the title to property or of
the ownership of property whether or not the transferor retains title as
security for the payment of amounts due him from the transferee.
"Cost Price" means the consideration paid by the serviceman for a
purchase valued in money, whether paid in money or otherwise, including
cash, credits and services, and shall be determined without any deduction
on account of the supplier's cost of the property sold or on account of any
other expense incurred by the supplier. When a serviceman contracts out
part or all of the services required in his sale of service, it shall be
presumed that the cost price to the serviceman of the property
transferred to him by his or her subcontractor is equal to 50% of the
subcontractor's charges to the serviceman in the absence of proof of the
consideration paid by the subcontractor for the purchase of such
property.
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership, association, joint
stock company, joint venture, public or private corporation, limited liability
company, and any receiver, executor, trustee, guardian or other representative
appointed by order of any court.
"Sale of Service" means any transaction except:
(a) A retail sale of tangible personal property taxable under the Retailers'
Occupation Tax Act or under the Use Tax Act.
(b) A sale of tangible personal property for the purpose of resale made in
compliance with Section 2c of the Retailers' Occupation Tax Act.
(c) Except as hereinafter provided, a sale or transfer of tangible personal
property as an incident to the rendering of service for or by any governmental
body or for or by any corporation, society, association, foundation or
institution organized and operated exclusively for charitable, religious or
educational purposes or any not-for-profit corporation, society, association,
foundation, institution or organization which has no compensated officers or
employees and which is organized and operated primarily for the recreation of
persons 55 years of age or older. A limited liability company may qualify for
the exemption under this paragraph only if the limited liability company is
organized and operated exclusively for educational purposes.
(d) (Blank).
(d-1) A sale or transfer of tangible personal
property as an incident to
the rendering of service for owners, lessors or shippers of tangible personal
property which is utilized by interstate carriers for hire for use as rolling
stock moving in interstate commerce, and equipment operated
by a telecommunications provider, licensed as a common carrier by the
Federal Communications Commission, which is permanently installed in or
affixed to aircraft moving in interstate commerce.
(d-1.1) On and after July 1, 2003 and through June 30, 2004, a sale or transfer of a motor vehicle
of the
second division with a gross vehicle weight in excess of 8,000 pounds as an
incident to the rendering of service if that motor
vehicle is subject
to the commercial distribution fee imposed under Section 3-815.1 of the
Illinois Vehicle
Code. Beginning on July 1, 2004 and through June 30, 2005, the use in this State of motor vehicles of the second division: (i) with a gross vehicle weight rating in excess of 8,000 pounds; (ii) that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code; and (iii) that are primarily used for commercial purposes. Through June 30, 2005, this exemption applies to repair and replacement parts added after the
initial
purchase of such a motor vehicle if that motor vehicle is used in a manner that
would
qualify for the rolling stock exemption otherwise provided for in this Act. For purposes of this paragraph, "used for commercial purposes" means the transportation of persons or property in furtherance of any commercial or industrial enterprise whether for-hire or not.
(d-2) The repairing, reconditioning or remodeling, for a common carrier by
rail, of tangible personal property which belongs to such carrier for hire, and
as to which such carrier receives the physical possession of the repaired,
reconditioned or remodeled item of tangible personal property in Illinois, and
which such carrier transports, or shares with another common carrier in the
transportation of such property, out of Illinois on a standard uniform bill of
lading showing the person who repaired, reconditioned or remodeled the property
as the shipper or consignor of such property to a destination outside Illinois,
for use outside Illinois.
(d-3) A sale or transfer of tangible personal property which
is produced by the seller thereof on special order in such a way as to have
made the applicable tax the Service Occupation Tax or the Service Use Tax,
rather than the Retailers' Occupation Tax or the Use Tax, for an interstate
carrier by rail which receives the physical possession of such property in
Illinois, and which transports such property, or shares with another common
carrier in the transportation of such property, out of Illinois on a standard
uniform bill of lading showing the seller of the property as the shipper or
consignor of such property to a destination outside Illinois, for use outside
Illinois.
(d-4) Until January 1, 1997, a sale, by a registered serviceman paying tax
under this Act to the Department, of special order printed materials delivered
outside Illinois and which are not returned to this State, if delivery is made
by the seller or agent of the seller, including an agent who causes the product
to be delivered outside Illinois by a common carrier or the U.S.
postal service.
(e) A sale or transfer of machinery and equipment used primarily in
the process of the manufacturing or assembling, either in an existing, an
expanded or a new manufacturing facility, of tangible personal property for
wholesale or retail sale or lease, whether such sale or lease is made directly
by the manufacturer or by some other person, whether the materials used in the
process are owned by the manufacturer or some other person, or whether such
sale or lease is made apart from or as an incident to the seller's engaging in
a service occupation and the applicable tax is a Service Occupation Tax or
Service Use Tax, rather than Retailers' Occupation Tax or Use Tax. The exemption provided by this paragraph (e) includes production related tangible personal property, as defined in Section 3-50 of the Use Tax Act, purchased on or after July 1, 2019. The exemption provided by this paragraph (e) does not include machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains.   The provisions of Public Act 98-583 are declaratory of existing law as to the meaning and scope of this exemption. The exemption under this subsection (e) is exempt from the provisions of Section 3-75.
(f) Until July 1, 2003, the sale or transfer of distillation
machinery
and equipment, sold as a
unit or kit and assembled or installed by the retailer, which machinery
and equipment is certified by the user to be used only for the production
of ethyl alcohol that will be used for consumption as motor fuel or as a
component of motor fuel for the personal use of such user and not subject
to sale or resale.
(g) At the election of any serviceman not required to be otherwise
registered as a retailer under Section 2a of the Retailers' Occupation Tax Act,
made for each fiscal year sales of service in which the aggregate annual cost
price of tangible personal property transferred as an incident to the sales of
service is less than 35% (75% in the case of servicemen transferring
prescription drugs or servicemen engaged in graphic arts production) of the
aggregate annual total gross receipts from all sales of service. The purchase
of such tangible personal property by the serviceman shall be subject to tax
under the Retailers' Occupation Tax Act and the Use Tax Act.
However, if a
primary serviceman who has made the election described in this paragraph
subcontracts service work to a secondary serviceman who has also made the
election described in this paragraph, the primary serviceman does not
incur a Use Tax liability if the secondary serviceman (i) has paid or will pay
Use
Tax on his or her cost price of any tangible personal property transferred
to the primary serviceman and (ii) certifies that fact in writing to the
primary serviceman.
Tangible personal property transferred incident to the completion of a
maintenance agreement is exempt from the tax imposed pursuant to this Act.
Exemption (e) also includes machinery and equipment used in the
general maintenance or repair of such exempt machinery and equipment or for
in-house manufacture of exempt machinery and equipment.
On and after July 1, 2017, exemption (e) also
includes graphic arts machinery and equipment, as
defined in paragraph (5) of Section 3-5. The machinery and equipment exemption does not include machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains.     The provisions of Public Act 98-583 are declaratory of existing law as to the meaning and scope of this exemption. For the purposes of exemption (e), each of these terms shall have the following
meanings:  (1) "manufacturing process" shall mean the production of any
article of tangible personal property, whether such article is a
finished product or an article for use in the process of manufacturing
or assembling a different article of tangible personal property, by
procedures commonly regarded as manufacturing, processing, fabricating,
or refining which changes some existing material or materials into a
material with a different form, use or name.  In relation to a
recognized integrated business composed of a series of operations which
collectively constitute manufacturing, or individually constitute
manufacturing operations, the manufacturing process shall be deemed to
commence with the first operation or stage of production in the series,
and shall not be deemed to end until the completion of the final product
in the last operation or stage of production in the series; and further for
purposes of exemption (e), photoprocessing is deemed to be a manufacturing
process of tangible personal property for wholesale or retail sale;
(2) "assembling process" shall mean the production of any article of
tangible personal property, whether such article is a finished product
or an article for use in the process of manufacturing or assembling a
different article of tangible personal property, by the combination of
existing materials in a manner commonly regarded as assembling which
results in a material of a different form, use or name; (3) "machinery"
shall mean major mechanical machines or major components of such machines
contributing to a manufacturing or assembling process; and (4) "equipment"
shall include any independent device or tool separate from any machinery but
essential to an integrated manufacturing or assembly process; including
computers used primarily in a manufacturer's computer
assisted design, computer assisted manufacturing (CAD/CAM) system; or any
subunit or assembly comprising a component of any machinery or auxiliary,
adjunct or attachment parts of machinery, such as tools, dies, jigs, fixtures,
patterns and molds; or any parts which require periodic replacement in the
course of normal operation; but shall not include hand tools.  Equipment
includes chemicals or chemicals acting as catalysts but only if the chemicals
or chemicals acting as catalysts effect a direct and immediate change upon a
product being manufactured or assembled for wholesale or retail sale or lease.
The purchaser of such machinery and equipment
who has an active resale registration number shall furnish such number to
the seller at the time of purchase.  The purchaser of such machinery and
equipment and tools without an active resale registration number shall furnish
to the seller a certificate of exemption stating facts
establishing the exemption, which certificate shall
be available to the Department for inspection or audit.
Except as provided in Section 2d of this Act, the rolling stock exemption
applies to rolling
stock
used by an interstate
carrier for hire, even just between points in Illinois, if such rolling
stock transports, for hire, persons whose journeys or property whose
shipments originate or terminate outside Illinois.
Any informal rulings, opinions or letters issued by the Department in
response to an inquiry or request for any opinion from any person
regarding the coverage and applicability of exemption (e) to specific
devices shall be published, maintained as a public record, and made
available for public inspection and copying.  If the informal ruling,
opinion or letter contains trade secrets or other confidential
information, where possible the Department shall delete such information
prior to publication.  Whenever such informal rulings, opinions, or
letters contain any policy of general applicability, the Department
shall formulate and adopt such policy as a rule in accordance with the
provisions of the Illinois Administrative Procedure Act.
On and after July 1, 1987, no entity otherwise eligible under exemption
(c) of this Section shall make tax-free purchases unless it has an active
exemption identification number issued by the Department.
"Serviceman" means any person who is engaged in the occupation of
making sales of service.
"Sale at Retail" means "sale at retail" as defined in the Retailers'
Occupation Tax Act.
"Supplier" means any person who makes sales of tangible personal
property to servicemen for the purpose of resale as an incident to a
sale of service.
(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-863, eff. 8-14-18; 101-9, eff. 6-5-19; 101-604, eff. 12-13-19.)
(35 ILCS 115/2a) (from Ch. 120, par. 439.102a)
Sec. 2a. 
		
		"Pollution control facilities" means any system, method,
construction, device or appliance appurtenant thereto transferred by a
serviceman for the primary purpose of eliminating, preventing, or reducing
air and water pollution as the term "air pollution" or "water pollution" is
defined in the "Environmental Protection Act", enacted by the 76th General
Assembly, or for the primary purpose of treating, pretreating, modifying or
disposing of any potential solid, liquid or gaseous pollutant which if
released without such treatment, pretreatment, modification or disposal
might be harmful, detrimental or offensive to human, plant or animal life,
or to property.
Until July 1, 2003, the purchase, employment and transfer of such
tangible personal property
as pollution control facilities shall not be deemed to be a purchase, use
or sale of service or of tangible personal property, but shall be deemed to
be intangible personal property.
(Source: P.A. 93-24, eff. 6-20-03.)
(35 ILCS 115/2b) (from Ch. 120, par. 439.102b)
Sec. 2b. 
		
		"Low sulfur dioxide emission coal fueled devices" means any
device sold or used or intended for the purpose of burning, combusting or
converting locally available coal in a manner which eliminates or significantly
reduces the need for additional sulfur dioxide abatement that would otherwise
be required under State or federal air emission standards.  Such device
includes all machinery, equipment, structures and all related apparatus of
a coal gasification facility, including coal feeding equipment, designed to
convert locally available coal into a low sulfur gaseous fuel and to manage
all waste and byproduct streams.
The purchase, employment and transfer of such tangible personal property
as low sulfur dioxide emission coal fueled devices is not a purchase, use
or sale of tangible personal property.
This amendatory Act of 1981 is not intended to nor does it make any change
in the meaning of any provision in this Section but is intended to remove
possible ambiguities, thereby confirming the existing meaning of this Section
in effect prior to the effective date of this amendatory Act of 1981.
(Source: P.A. 87-435.)
(35 ILCS 115/2c) (from Ch. 120, par. 439.102c)
Sec. 2c. 
		
		For purposes of this Act, a corporation, limited liability
company, society, association, foundation or institution organized and operated
exclusively for educational purposes shall include:  all tax-supported public
schools; private schools which offer systematic instruction in useful branches
of learning by methods common to public schools and which compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools; licensed day care centers as defined in Section 2.09 of the Child Care
Act of 1969 which are operated by a not-for-profit corporation, society,
association, foundation, institution or organization; vocational or technical
schools or institutes organized and operated exclusively to provide a course of
study of not less than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical, industrial,
business or commercial occupation.
However, a corporation, limited liability company, society, association,
foundation or institution organized and operated for the purpose of offering
professional, trade or business seminars of short duration, self-improvement or
personality development courses, courses which are avocational or recreational
in nature, courses pursued entirely by open circuit television or radio,
correspondence courses, or courses which do not provide specialized training
within a specific vocational or technical field shall not be considered to be
organized and operated exclusively for educational purposes.
(Source: P.A. 88-480.)
(35 ILCS 115/2d)
Sec. 2d. Motor vehicles; trailers; use as rolling stock definition.
(a) (Blank).
(b) (Blank).
(c) This subsection (c) applies to motor vehicles, other than limousines, purchased through June 30, 2017. For motor vehicles, other than limousines, purchased on or after July 1, 2017, subsection (d-5) applies. This subsection (c) applies to limousines purchased before, on, or after July 1, 2017. "Use as rolling stock moving in interstate commerce" in paragraph (d-1) of the definition of "sale of service" in Section 2 occurs for motor vehicles, as defined in Section 1-146 of the Illinois Vehicle Code, when during a 12-month period the rolling stock has carried persons or property for hire in interstate commerce for greater than 50% of its total trips for that period or for greater than 50% of its total miles for that period.   The person claiming the exemption shall make an election at the time of purchase to use either the trips or mileage method.   Persons who purchased motor vehicles prior to July 1, 2004 shall make an election to use either the trips or mileage method and document that election in their books and records.  If no election is made under this subsection to use the trips or mileage method, the person shall be deemed to have chosen the mileage method.
For purposes of determining qualifying trips or miles, motor vehicles that carry persons or property for hire, even just between points in Illinois, will be considered used for hire in interstate commerce if the motor vehicle transports persons whose journeys or property whose shipments originate or terminate outside Illinois. The exemption for motor vehicles
used as rolling stock moving in interstate commerce may be
claimed only for the following vehicles: (i) motor vehicles whose gross vehicle weight
rating exceeds 16,000 pounds; and (ii) limousines, as defined in Section 1-139.1 of the Illinois Vehicle Code. Through June 30, 2017, this definition applies to all property purchased for the purpose of being attached to those motor vehicles as a part thereof. On and after July 1, 2017, this definition applies to property purchased for the purpose of being attached to limousines as a part thereof.
(d) For purchases made through June 30, 2017, "use as rolling stock moving in interstate commerce" in paragraph (d-1) of the definition of "sale of service" in Section 2 occurs for trailers, as defined in Section 1-209 of the Illinois Vehicle Code, semitrailers as defined in Section 1-187 of the Illinois Vehicle Code, and pole trailers as defined in Section 1-161 of the Illinois Vehicle Code, when during a 12-month period the rolling stock has carried persons or property for hire in interstate commerce for greater than 50% of its total trips for that period or for greater than 50% of its total miles for that period.  The person claiming the exemption for a trailer or trailers that will not be dedicated to a motor vehicle or group of motor vehicles shall make an election at the time of purchase to use either the trips or mileage method.  Persons who purchased trailers prior to July 1, 2004 that are not dedicated to a motor vehicle or group of motor vehicles shall make an election to use either the trips or mileage method and document that election in their books and records. If no election is made under this subsection to use the trips or mileage method, the person shall be deemed to have chosen the mileage method.
For purposes of determining qualifying trips or miles, trailers, semitrailers, or pole trailers that carry property for hire, even just between points in Illinois, will be considered used for hire in interstate commerce if the trailers, semitrailers, or pole trailers transport property whose shipments originate or terminate outside Illinois.   This definition applies to all property purchased for the purpose of being attached to those trailers, semitrailers, or pole trailers as a part thereof.  In lieu of a person providing documentation regarding the qualifying use of each individual trailer, semitrailer, or pole trailer, that person may document such qualifying use by providing documentation of the following:
(1) If a trailer, semitrailer, or pole trailer is     dedicated to a motor vehicle that qualifies as rolling stock moving in interstate commerce under subsection (c) of this Section, then that trailer, semitrailer, or pole trailer qualifies as rolling stock moving in interstate commerce under this subsection.
(2) If a trailer, semitrailer, or pole trailer is     dedicated to a group of motor vehicles that all qualify as rolling stock moving in interstate commerce under subsection (c) of this Section, then that trailer, semitrailer, or pole trailer qualifies as rolling stock moving in interstate commerce under this subsection.
(3) If one or more trailers, semitrailers, or pole     trailers are dedicated to a group of motor vehicles and not all of those motor vehicles in that group qualify as rolling stock moving in interstate commerce under subsection (c) of this Section, then the percentage of those trailers, semitrailers, or pole trailers that qualifies as rolling stock moving in interstate commerce under this subsection is equal to the percentage of those motor vehicles in that group that qualify as rolling stock moving in interstate commerce under subsection (c) of this Section to which those trailers, semitrailers, or pole trailers are dedicated.   However, to determine the qualification for the exemption provided under this item (3), the mathematical application of the qualifying percentage to one or more trailers, semitrailers, or pole trailers under this subpart shall not be allowed as to any fraction of a trailer, semitrailer, or pole trailer.
(d-5) For motor vehicles and trailers purchased on or after July 1, 2017, "use as rolling stock moving in interstate commerce" means that:
(1) the motor vehicle or trailer is used to transport     persons or property for hire;
(2) for purposes of the exemption under paragraph     (d-1) of the definition of "sale of service" in Section 2, the purchaser who is an owner, lessor, or shipper claiming the exemption certifies that the motor vehicle or trailer will be utilized, from the time of purchase and continuing through the statute of limitations for issuing a notice of tax liability under this Act, by an interstate carrier or carriers for hire who hold, and are required by Federal Motor Carrier Safety Administration regulations to hold, an active USDOT Number with the Carrier Operation listed as "Interstate" and the Operation Classification listed as "authorized for hire", "exempt for hire", or both "authorized for hire" and "exempt for hire";  except that this paragraph (2) does not apply to a motor vehicle or trailer used  at an airport to support the operation of an aircraft moving in interstate commerce, as long as (i) in the case of a motor vehicle, the motor vehicle meets paragraphs (1) and (3) of this subsection (d-5) or (ii) in the case of a trailer, the trailer meets paragraph (1) of this subsection (d-5); and
(3) for motor vehicles, the gross vehicle weight     rating exceeds 16,000 pounds.
The definition of "use as rolling stock moving in interstate commerce" in this subsection (d-5) applies to all property purchased on or after July 1, 2017 for the purpose of being attached to a motor vehicle or trailer as a part thereof, regardless of whether the motor vehicle or trailer was purchased before, on, or after July 1, 2017.
If an item ceases to meet requirements (1) through (3) under this subsection (d-5), then the tax is imposed on the selling price, allowing for a reasonable depreciation for the period during which the item qualified for the exemption.
For purposes of this subsection (d-5):
"Motor vehicle" excludes limousines, but otherwise     means that term as defined in Section 1-146 of the Illinois Vehicle Code.
"Trailer" means (i) "trailer", as defined in Section     1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as defined in Section 1-187 of the Illinois Vehicle Code, and (iii) "pole trailer", as defined in Section 1-161 of the Illinois Vehicle Code.
(e) For aircraft and watercraft purchased on or after January 1, 2014, "use as rolling stock moving in interstate commerce" in paragraph (d-1) of the definition of "sale of service" in Section 2 occurs when, during a 12-month period, the rolling stock has carried persons or property for hire in interstate commerce for greater than 50% of its total trips for that period or for greater than 50% of its total miles for that period.  The person claiming the exemption shall make an election at the time of purchase to use either the trips or mileage method and document that election in their books and records.  If no election is made under this subsection to use the trips or mileage method, the person shall be deemed to have chosen the mileage method.  For aircraft, flight hours may be used in lieu of recording miles in determining whether the aircraft meets the mileage test in this subsection.  For watercraft, nautical miles or trip hours may be used in lieu of recording miles in determining whether the watercraft meets the mileage test in this subsection.
Notwithstanding any other provision of law to the contrary, property purchased on or after January 1, 2014 for the purpose of being attached to aircraft or watercraft as a part thereof qualifies as rolling stock moving in interstate commerce only if the aircraft or watercraft to which it will be attached qualifies as rolling stock moving in interstate commerce under the test set forth in this subsection (e), regardless of when the aircraft or watercraft was purchased. Persons who purchased aircraft or watercraft prior to January 1, 2014 shall make an election to use either the trips or mileage method and document that election in their books and records for the purpose of determining whether property purchased on or after January 1, 2014 for the purpose of being attached to aircraft or watercraft as a part thereof qualifies as rolling stock moving in interstate commerce under this subsection (e).
(f) The election to use either the trips or mileage method made under the provisions of subsections (c), (d), or (e) of this Section will remain in effect for the duration of the purchaser's ownership of that item.
(Source: P.A. 102-558, eff. 8-20-21.)
(35 ILCS 115/3) (from Ch. 120, par. 439.103)
Sec. 3. Tax imposed. A tax is imposed upon all
persons engaged in the business of
making sales of service (referred to as
"servicemen") on all tangible personal property
transferred as an incident of a sale of service,
including computer software, and including photographs, negatives,
and positives that are the
product of photoprocessing, but not including products of photoprocessing
produced for use in motion pictures for public commercial exhibition.
Beginning January 1, 2001, prepaid telephone calling arrangements shall be
considered tangible personal property subject to the tax imposed under this Act
regardless of the form in which those arrangements may be embodied,
transmitted, or fixed by any method now known or hereafter developed. Sales of (1) electricity delivered to customers by wire;  (2) natural or artificial gas that is delivered to customers through pipes, pipelines, or mains;  and (3) water that is delivered to customers through pipes, pipelines, or mains are not subject to tax under this Act.  The provisions of this amendatory Act of the 98th General Assembly are declaratory of existing law as to the meaning and scope of this Act.
(Source: P.A. 98-583, eff. 1-1-14.)
(35 ILCS 115/3-5)
(Text of Section from P.A. 103-9, Article 5, Section 5-15)
Sec. 3-5. Exemptions. The following tangible personal property is
exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society, association,
foundation, institution, or organization, other than a limited liability
company, that is organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the personal property
was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a not-for-profit Illinois county fair
association for use in conducting, operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit
arts or cultural organization that establishes, by proof required by the
Department by
rule, that it has received an exemption  under Section 501(c)(3) of the
Internal Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services.  These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Legal tender, currency, medallions, or gold or silver coinage
issued by the State of Illinois, the government of the United States of
America, or the government of any foreign country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and
replacement parts, both new and used, and including that manufactured on
special order or purchased for lease, certified by the purchaser to be used
primarily for graphic arts production.
Equipment includes chemicals or chemicals acting as catalysts but only if
the
chemicals or chemicals acting as catalysts effect a direct and immediate change
upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under Section 2 of this Act.
(6) Personal property sold by a teacher-sponsored student organization
affiliated with an elementary or secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for production agriculture or State or federal agricultural
programs, including individual replacement parts for the machinery and
equipment, including machinery and equipment purchased for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but
excluding other motor vehicles required to be registered under the Illinois
Vehicle
Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (7).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to,
soil testing sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and activities such as, but
not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals.  This item (7) is exempt
from the provisions of
Section 3-55.
(8) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment,
or storage in the conduct of its business as an air common carrier, for
a flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of food and
beverages, to the extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the employees who
participate directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service charge is imposed.
(10) Until July 1, 2003, oil field exploration, drilling, and production
equipment,
including (i) rigs and parts of rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and equipment purchased
for lease; but
excluding motor vehicles required to be registered under the Illinois
Vehicle Code.
(11) Photoprocessing machinery and equipment, including repair and
replacement parts, both new and used, including that manufactured on
special order, certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and equipment
purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including
equipment
purchased for lease, but excluding motor vehicles required to be registered
under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
 for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(13) Beginning January 1, 1992 and through June 30, 2016, food for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks and food that
has been prepared for immediate consumption) and prescription and
non-prescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use,
when purchased for use by a person receiving medical assistance under
Article V of the Illinois Public Aid Code who resides in a licensed
long-term care facility, as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(14) Semen used for artificial insemination of livestock for direct
agricultural production.
(15) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (15) is exempt from the provisions of Section 3-55, and the exemption provided for under this item (15) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88)
 for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(16) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a
hospital
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a
lease of one year or longer executed or in effect at the time of the purchase,
to a governmental body
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(18) Beginning with taxable years ending on or after December
31, 1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(20) Beginning July 1, 1999, game or game birds sold at a "game breeding
and
hunting preserve area" as that term is used
in the
Wildlife Code.  This paragraph is exempt from the provisions
of
Section 3-55.
(21) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois Vehicle Code, that is donated to a corporation, limited liability
company, society, association, foundation, or institution that is determined by
the Department to be organized and operated exclusively for educational
purposes.  For purposes of this exemption, "a corporation, limited liability
company, society, association, foundation, or institution organized and
operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(22) Beginning January 1, 2000,  personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children.  This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity.  This paragraph is exempt
from the provisions
of Section 3-55.
(23) Beginning January 1, 2000
and through December 31, 2001, new or used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for
machines used in commercial, coin-operated amusement
and vending business if a use or occupation tax is paid on the gross receipts
derived from
the use of the commercial, coin-operated amusement and vending machines.
 This paragraph is exempt from the provisions of Section 3-55.
(24) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a hospital that has been issued an active tax
exemption identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act.  This paragraph is exempt from the provisions of
Section 3-55.
(25) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
personal property sold to a lessor who
leases the property, under a lease of one year or longer executed or in effect
at the time of the purchase, to a governmental body that has been issued an
active tax exemption identification number by the Department under Section 1g
of the Retailers' Occupation Tax Act.  This paragraph is exempt from the
provisions of Section 3-55.
(26) Beginning on January 1, 2002 and through June 30, 2016, tangible personal property
purchased
from an Illinois retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property in Illinois,
temporarily store the property in Illinois (i) for the purpose of subsequently
transporting it outside this State for use or consumption thereafter solely
outside this State or (ii) for the purpose of being processed, fabricated, or
manufactured into, attached to, or incorporated into other tangible personal
property to be transported outside this State and thereafter used or consumed
solely outside this State.  The Director of Revenue shall, pursuant to rules
adopted in accordance with the Illinois Administrative Procedure Act, issue a
permit to any taxpayer in good standing with the Department who is eligible for
the exemption under this paragraph (26).  The permit issued under
this paragraph (26) shall authorize the holder, to the extent and
in the manner specified in the rules adopted under this Act, to purchase
tangible personal property from a retailer exempt from the taxes imposed by
this Act.  Taxpayers shall maintain all necessary books and records to
substantiate the use and consumption of all such tangible personal property
outside of the State of Illinois.
(27) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-55.
(28) Tangible personal property sold to a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall.  This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code.  This paragraph is exempt from the provisions of Section 3-55.
(29) Beginning January 1, 2010 and continuing through December 31, 2029, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft. However, until January 1, 2024, this exemption excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films.
Beginning January 1, 2010 and continuing through December 31, 2023, this exemption applies only to the transfer of qualifying tangible personal property incident to the modification, refurbishment, completion, replacement, repair, or maintenance of an aircraft by persons who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. From January 1, 2024 through December 31, 2029, this exemption applies only to the use of qualifying tangible personal property by: (A) persons who modify, refurbish, complete, repair, replace, or maintain aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations; and (B) persons who engage in the modification, replacement, repair, and maintenance of aircraft engines or power plants without regard to whether or not those persons meet the qualifications of item (A).
The changes made to this paragraph (29) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (29) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(30) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups.
(31) Tangible personal property transferred to a purchaser who is exempt from tax by operation of federal law. This paragraph is exempt from the provisions of Section 3-55.
(32) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant.  Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (32) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (32):
"Data center" means a building or a series of     buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
"Qualified tangible personal property" means:     electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center.  The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center.  To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
This item (32) is exempt from the provisions of Section 3-55.
(33) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (33) is exempt from the provisions of Section 3-55. As used in this item (33):
"Breast pump" means an electrically controlled or     manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
"Breast pump collection and storage supplies" means     items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
"Breast pump collection and storage supplies"     includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
"Breast pump collection and storage supplies" does     not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
"Breast pump kit" means a kit that: (1) contains no     more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
(34) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act.  This item (34) is exempt from the provisions of Section 3-55.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section 5-15, eff. 6-7-23.)
(Text of Section from P.A. 103-9, Article 15, Section 15-15)
Sec. 3-5. Exemptions. The following tangible personal property is
exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society, association,
foundation, institution, or organization, other than a limited liability
company, that is organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the personal property
was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a not-for-profit Illinois county fair
association for use in conducting, operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit
arts or cultural organization that establishes, by proof required by the
Department by
rule, that it has received an exemption  under Section 501(c)(3) of the
Internal Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services.  These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Legal tender, currency, medallions, or gold or silver coinage
issued by the State of Illinois, the government of the United States of
America, or the government of any foreign country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and
replacement parts, both new and used, and including that manufactured on
special order or purchased for lease, certified by the purchaser to be used
primarily for graphic arts production.
Equipment includes chemicals or chemicals acting as catalysts but only if
the
chemicals or chemicals acting as catalysts effect a direct and immediate change
upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under Section 2 of this Act.
(6) Personal property sold by a teacher-sponsored student organization
affiliated with an elementary or secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for production agriculture or State or federal agricultural
programs, including individual replacement parts for the machinery and
equipment, including machinery and equipment purchased for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but
excluding other motor vehicles required to be registered under the Illinois
Vehicle
Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (7).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to,
soil testing sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and activities such as, but
not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals.
Beginning on January 1, 2024, farm machinery and equipment also includes electrical power generation equipment used primarily for production agriculture.
This item (7) is exempt
from the provisions of
Section 3-55.
(8) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment,
or storage in the conduct of its business as an air common carrier, for
a flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of food and
beverages, to the extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the employees who
participate directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service charge is imposed.
(10) Until July 1, 2003, oil field exploration, drilling, and production
equipment,
including (i) rigs and parts of rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and equipment purchased
for lease; but
excluding motor vehicles required to be registered under the Illinois
Vehicle Code.
(11) Photoprocessing machinery and equipment, including repair and
replacement parts, both new and used, including that manufactured on
special order, certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and equipment
purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including
equipment
purchased for lease, but excluding motor vehicles required to be registered
under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
 for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(13) Beginning January 1, 1992 and through June 30, 2016, food for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks and food that
has been prepared for immediate consumption) and prescription and
non-prescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use,
when purchased for use by a person receiving medical assistance under
Article V of the Illinois Public Aid Code who resides in a licensed
long-term care facility, as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(14) Semen used for artificial insemination of livestock for direct
agricultural production.
(15) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (15) is exempt from the provisions of Section 3-55, and the exemption provided for under this item (15) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88)
 for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(16) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a
hospital
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a
lease of one year or longer executed or in effect at the time of the purchase,
to a governmental body
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(18) Beginning with taxable years ending on or after December
31, 1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(20) Beginning July 1, 1999, game or game birds sold at a "game breeding
and
hunting preserve area" as that term is used
in the
Wildlife Code.  This paragraph is exempt from the provisions
of
Section 3-55.
(21) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois Vehicle Code, that is donated to a corporation, limited liability
company, society, association, foundation, or institution that is determined by
the Department to be organized and operated exclusively for educational
purposes.  For purposes of this exemption, "a corporation, limited liability
company, society, association, foundation, or institution organized and
operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(22) Beginning January 1, 2000,  personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children.  This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity.  This paragraph is exempt
from the provisions
of Section 3-55.
(23) Beginning January 1, 2000
and through December 31, 2001, new or used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for
machines used in commercial, coin-operated amusement
and vending business if a use or occupation tax is paid on the gross receipts
derived from
the use of the commercial, coin-operated amusement and vending machines.
 This paragraph is exempt from the provisions of Section 3-55.
(24) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a hospital that has been issued an active tax
exemption identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act.  This paragraph is exempt from the provisions of
Section 3-55.
(25) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
personal property sold to a lessor who
leases the property, under a lease of one year or longer executed or in effect
at the time of the purchase, to a governmental body that has been issued an
active tax exemption identification number by the Department under Section 1g
of the Retailers' Occupation Tax Act.  This paragraph is exempt from the
provisions of Section 3-55.
(26) Beginning on January 1, 2002 and through June 30, 2016, tangible personal property
purchased
from an Illinois retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property in Illinois,
temporarily store the property in Illinois (i) for the purpose of subsequently
transporting it outside this State for use or consumption thereafter solely
outside this State or (ii) for the purpose of being processed, fabricated, or
manufactured into, attached to, or incorporated into other tangible personal
property to be transported outside this State and thereafter used or consumed
solely outside this State.  The Director of Revenue shall, pursuant to rules
adopted in accordance with the Illinois Administrative Procedure Act, issue a
permit to any taxpayer in good standing with the Department who is eligible for
the exemption under this paragraph (26).  The permit issued under
this paragraph (26) shall authorize the holder, to the extent and
in the manner specified in the rules adopted under this Act, to purchase
tangible personal property from a retailer exempt from the taxes imposed by
this Act.  Taxpayers shall maintain all necessary books and records to
substantiate the use and consumption of all such tangible personal property
outside of the State of Illinois.
(27) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-55.
(28) Tangible personal property sold to a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall.  This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code.  This paragraph is exempt from the provisions of Section 3-55.
(29) Beginning January 1, 2010 and continuing through December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the transfer of qualifying tangible personal property incident to the modification, refurbishment, completion, replacement, repair, or maintenance of an aircraft by persons who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (29) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (29) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(30) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups.
(31) Tangible personal property transferred to a purchaser who is exempt from tax by operation of federal law. This paragraph is exempt from the provisions of Section 3-55.
(32) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant.  Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (32) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (32):
"Data center" means a building or a series of     buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
"Qualified tangible personal property" means:     electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center.  The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center.  To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
This item (32) is exempt from the provisions of Section 3-55.
(33) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (33) is exempt from the provisions of Section 3-55. As used in this item (33):
"Breast pump" means an electrically controlled or     manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
"Breast pump collection and storage supplies" means     items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
"Breast pump collection and storage supplies"     includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
"Breast pump collection and storage supplies" does     not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
"Breast pump kit" means a kit that: (1) contains no     more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
(34) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act.  This item (34) is exempt from the provisions of Section 3-55.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 15, Section 15-15, eff. 6-7-23.)
(Text of Section from P.A. 103-154)
Sec. 3-5. Exemptions. The following tangible personal property is
exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society, association,
foundation, institution, or organization, other than a limited liability
company, that is organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the personal property
was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a not-for-profit Illinois county fair
association for use in conducting, operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit
arts or cultural organization that establishes, by proof required by the
Department by
rule, that it has received an exemption  under Section 501(c)(3) of the
Internal Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services.  These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Legal tender, currency, medallions, or gold or silver coinage
issued by the State of Illinois, the government of the United States of
America, or the government of any foreign country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and
replacement parts, both new and used, and including that manufactured on
special order or purchased for lease, certified by the purchaser to be used
primarily for graphic arts production.
Equipment includes chemicals or chemicals acting as catalysts but only if
the
chemicals or chemicals acting as catalysts effect a direct and immediate change
upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under Section 2 of this Act.
(6) Personal property sold by a teacher-sponsored student organization
affiliated with an elementary or secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for production agriculture or State or federal agricultural
programs, including individual replacement parts for the machinery and
equipment, including machinery and equipment purchased for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but
excluding other motor vehicles required to be registered under the Illinois
Vehicle
Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (7).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to,
soil testing sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and activities such as, but
not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals.  This item (7) is exempt
from the provisions of
Section 3-55.
(8) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment,
or storage in the conduct of its business as an air common carrier, for
a flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of food and
beverages, to the extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the employees who
participate directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service charge is imposed.
(10) Until July 1, 2003, oil field exploration, drilling, and production
equipment,
including (i) rigs and parts of rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and equipment purchased
for lease; but
excluding motor vehicles required to be registered under the Illinois
Vehicle Code.
(11) Photoprocessing machinery and equipment, including repair and
replacement parts, both new and used, including that manufactured on
special order, certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and equipment
purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including
equipment
purchased for lease, but excluding motor vehicles required to be registered
under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
 for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(13) Beginning January 1, 1992 and through June 30, 2016, food for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks and food that
has been prepared for immediate consumption) and prescription and
non-prescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use,
when purchased for use by a person receiving medical assistance under
Article V of the Illinois Public Aid Code who resides in a licensed
long-term care facility, as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(14) Semen used for artificial insemination of livestock for direct
agricultural production.
(15) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (15) is exempt from the provisions of Section 3-55, and the exemption provided for under this item (15) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88)
 for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(16) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a
hospital
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a
lease of one year or longer executed or in effect at the time of the purchase,
to a governmental body
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(18) Beginning with taxable years ending on or after December
31, 1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(20) Beginning July 1, 1999, game or game birds sold at a "game breeding
and
hunting preserve area" as that term is used
in the
Wildlife Code.  This paragraph is exempt from the provisions
of
Section 3-55.
(21) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois Vehicle Code, that is donated to a corporation, limited liability
company, society, association, foundation, or institution that is determined by
the Department to be organized and operated exclusively for educational
purposes.  For purposes of this exemption, "a corporation, limited liability
company, society, association, foundation, or institution organized and
operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(22) Beginning January 1, 2000,  personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children.  This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity.  This paragraph is exempt
from the provisions
of Section 3-55.
(23) Beginning January 1, 2000
and through December 31, 2001, new or used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for
machines used in commercial, coin-operated amusement
and vending business if a use or occupation tax is paid on the gross receipts
derived from
the use of the commercial, coin-operated amusement and vending machines.
 This paragraph is exempt from the provisions of Section 3-55.
(24) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a hospital that has been issued an active tax
exemption identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act.  This paragraph is exempt from the provisions of
Section 3-55.
(25) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
personal property sold to a lessor who
leases the property, under a lease of one year or longer executed or in effect
at the time of the purchase, to a governmental body that has been issued an
active tax exemption identification number by the Department under Section 1g
of the Retailers' Occupation Tax Act.  This paragraph is exempt from the
provisions of Section 3-55.
(26) Beginning on January 1, 2002 and through June 30, 2016, tangible personal property
purchased
from an Illinois retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property in Illinois,
temporarily store the property in Illinois (i) for the purpose of subsequently
transporting it outside this State for use or consumption thereafter solely
outside this State or (ii) for the purpose of being processed, fabricated, or
manufactured into, attached to, or incorporated into other tangible personal
property to be transported outside this State and thereafter used or consumed
solely outside this State.  The Director of Revenue shall, pursuant to rules
adopted in accordance with the Illinois Administrative Procedure Act, issue a
permit to any taxpayer in good standing with the Department who is eligible for
the exemption under this paragraph (26).  The permit issued under
this paragraph (26) shall authorize the holder, to the extent and
in the manner specified in the rules adopted under this Act, to purchase
tangible personal property from a retailer exempt from the taxes imposed by
this Act.  Taxpayers shall maintain all necessary books and records to
substantiate the use and consumption of all such tangible personal property
outside of the State of Illinois.
(27) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-55.
(28) Tangible personal property sold to a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall.  This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code.  This paragraph is exempt from the provisions of Section 3-55.
(29) Beginning January 1, 2010 and continuing through December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the transfer of qualifying tangible personal property incident to the modification, refurbishment, completion, replacement, repair, or maintenance of an aircraft by persons who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (29) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (29) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(30) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups.
(31) Tangible personal property transferred to a purchaser who is exempt from tax by operation of federal law. This paragraph is exempt from the provisions of Section 3-55.
(32) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant.  Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (32) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (32):
"Data center" means a building or a series of     buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
"Qualified tangible personal property" means:     electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center.  The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center.  To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
This item (32) is exempt from the provisions of Section 3-55.
(33) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (33) is exempt from the provisions of Section 3-55. As used in this item (33):
"Breast pump" means an electrically controlled or     manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
"Breast pump collection and storage supplies" means     items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
"Breast pump collection and storage supplies"     includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
"Breast pump collection and storage supplies" does     not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
"Breast pump kit" means a kit that: (1) contains no     more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
(34) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act.  This item (34) is exempt from the provisions of Section 3-55.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-154, eff. 6-30-23.)
(Text of Section from P.A. 103-384)
Sec. 3-5. Exemptions. The following tangible personal property is
exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society, association,
foundation, institution, or organization, other than a limited liability
company, that is organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the personal property
was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a not-for-profit Illinois county fair
association for use in conducting, operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit
arts or cultural organization that establishes, by proof required by the
Department by
rule, that it has received an exemption  under Section 501(c)(3) of the
Internal Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services.  These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Legal tender, currency, medallions, or gold or silver coinage
issued by the State of Illinois, the government of the United States of
America, or the government of any foreign country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and
replacement parts, both new and used, and including that manufactured on
special order or purchased for lease, certified by the purchaser to be used
primarily for graphic arts production.
Equipment includes chemicals or chemicals acting as catalysts but only if
the
chemicals or chemicals acting as catalysts effect a direct and immediate change
upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under Section 2 of this Act.
(6) Personal property sold by a teacher-sponsored student organization
affiliated with an elementary or secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for production agriculture or State or federal agricultural
programs, including individual replacement parts for the machinery and
equipment, including machinery and equipment purchased for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but
excluding other motor vehicles required to be registered under the Illinois
Vehicle
Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (7).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to,
soil testing sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and activities such as, but
not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals.  This item (7) is exempt
from the provisions of
Section 3-55.
(8) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment,
or storage in the conduct of its business as an air common carrier, for
a flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of food and
beverages, to the extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the employees who
participate directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service charge is imposed.
(10) Until July 1, 2003, oil field exploration, drilling, and production
equipment,
including (i) rigs and parts of rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and equipment purchased
for lease; but
excluding motor vehicles required to be registered under the Illinois
Vehicle Code.
(11) Photoprocessing machinery and equipment, including repair and
replacement parts, both new and used, including that manufactured on
special order, certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and equipment
purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including
equipment
purchased for lease, but excluding motor vehicles required to be registered
under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
 for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(13) Beginning January 1, 1992 and through June 30, 2016, food for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks and food that
has been prepared for immediate consumption) and prescription and
non-prescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use,
when purchased for use by a person receiving medical assistance under
Article V of the Illinois Public Aid Code who resides in a licensed
long-term care facility, as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(14) Semen used for artificial insemination of livestock for direct
agricultural production.
(15) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (15) is exempt from the provisions of Section 3-55, and the exemption provided for under this item (15) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88)
 for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(16) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a
hospital
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a
lease of one year or longer executed or in effect at the time of the purchase,
to a governmental body
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
(18) Beginning with taxable years ending on or after December
31, 1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(20) Beginning July 1, 1999, game or game birds sold at a "game breeding
and
hunting preserve area" as that term is used
in the
Wildlife Code.  This paragraph is exempt from the provisions
of
Section 3-55.
(21) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois Vehicle Code, that is donated to a corporation, limited liability
company, society, association, foundation, or institution that is determined by
the Department to be organized and operated exclusively for educational
purposes.  For purposes of this exemption, "a corporation, limited liability
company, society, association, foundation, or institution organized and
operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(22) Beginning January 1, 2000,  personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children.  This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity.  This paragraph is exempt
from the provisions
of Section 3-55.
(23) Beginning January 1, 2000
and through December 31, 2001, new or used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for
machines used in commercial, coin-operated amusement
and vending business if a use or occupation tax is paid on the gross receipts
derived from
the use of the commercial, coin-operated amusement and vending machines.
 This paragraph is exempt from the provisions of Section 3-55.
(24) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or in effect at the
time of the purchase, to a hospital that has been issued an active tax
exemption identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act.  This paragraph is exempt from the provisions of
Section 3-55.
(25) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
personal property sold to a lessor who
leases the property, under a lease of one year or longer executed or in effect
at the time of the purchase, to a governmental body that has been issued an
active tax exemption identification number by the Department under Section 1g
of the Retailers' Occupation Tax Act.  This paragraph is exempt from the
provisions of Section 3-55.
(26) Beginning on January 1, 2002 and through June 30, 2016, tangible personal property
purchased
from an Illinois retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property in Illinois,
temporarily store the property in Illinois (i) for the purpose of subsequently
transporting it outside this State for use or consumption thereafter solely
outside this State or (ii) for the purpose of being processed, fabricated, or
manufactured into, attached to, or incorporated into other tangible personal
property to be transported outside this State and thereafter used or consumed
solely outside this State.  The Director of Revenue shall, pursuant to rules
adopted in accordance with the Illinois Administrative Procedure Act, issue a
permit to any taxpayer in good standing with the Department who is eligible for
the exemption under this paragraph (26).  The permit issued under
this paragraph (26) shall authorize the holder, to the extent and
in the manner specified in the rules adopted under this Act, to purchase
tangible personal property from a retailer exempt from the taxes imposed by
this Act.  Taxpayers shall maintain all necessary books and records to
substantiate the use and consumption of all such tangible personal property
outside of the State of Illinois.
(27) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-55.
(28) Tangible personal property sold to a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall.  This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code.  This paragraph is exempt from the provisions of Section 3-55.
(29) Beginning January 1, 2010 and continuing through December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the transfer of qualifying tangible personal property incident to the modification, refurbishment, completion, replacement, repair, or maintenance of an aircraft by persons who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (29) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (29) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(30) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups.
(31) Tangible personal property transferred to a purchaser who is exempt from tax by operation of federal law. This paragraph is exempt from the provisions of Section 3-55.
(32) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant.  Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (32) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (32):
"Data center" means a building or a series of     buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
"Qualified tangible personal property" means:     electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center.  The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center.  To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
This item (32) is exempt from the provisions of Section 3-55.
(33) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (33) is exempt from the provisions of Section 3-55. As used in this item (33):
"Breast pump" means an electrically controlled or     manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
"Breast pump collection and storage supplies" means     items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
"Breast pump collection and storage supplies"     includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
"Breast pump collection and storage supplies" does     not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
"Breast pump kit" means a kit that: (1) contains no     more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
(34) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act.  This item (34) is exempt from the provisions of Section 3-55.
(35) Beginning on January 1, 2024, tangible personal property purchased by an active duty member of the armed forces of the United States who presents valid military identification and purchases the property using a form of payment where the federal government is the payor. The member of the armed forces must complete, at the point of sale, a form prescribed by the Department of Revenue documenting that the transaction is eligible for the exemption under this paragraph.  Retailers must keep the form as documentation of the exemption in their records for a period of not less than 6 years. "Armed forces of the United States" means the United States Army, Navy, Air Force, Marine Corps, or Coast Guard. This paragraph is exempt from the provisions of Section 3-55.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-384, eff. 1-1-24.)
(35 ILCS 115/3-5.5)
Sec. 3-5.5. Food and drugs sold by not-for-profit organizations; exemption. The Department shall not collect the 1% tax imposed under this Act from any not-for-profit organization that sells
food in a food distribution program at a price below the retail cost of the
food to purchasers who, as a condition of participation in the program, are
required to perform community service, located in a county or municipality that
notifies the Department, in writing, that the county or municipality does not
want the tax to be collected from any of such organizations located
in the county or municipality.
(Source: P.A. 100-1171, eff. 1-4-19.)
(35 ILCS 115/3-7)
Sec. 3-7. 
		Aggregate manufacturing exemption. 
		Through June 30, 2003,
aggregate exploration,
mining, offhighway hauling, processing, maintenance, and reclamation equipment,
including replacement parts and equipment, and including equipment purchased
for lease, but excluding motor vehicles required to be registered under the
Illinois Vehicle Code, is exempt from the tax imposed by this Act.
(Source: P.A. 92-603, eff. 6-28-02; 93-24, eff. 6-20-03.)
(35 ILCS 115/3-8)
(Text of Section from P.A. 102-700)
Sec. 3-8. Hospital exemption.
(a)  Tangible personal property sold to or used by a hospital owner that owns one or more hospitals licensed under the Hospital Licensing Act or operated under the University of Illinois Hospital Act, or a hospital affiliate that is not already exempt under another provision of this Act  and meets the criteria for an exemption under this Section, is exempt from taxation under this Act.
(b)  A hospital owner or hospital affiliate satisfies the conditions for an exemption under this Section if the value of qualified services or activities listed in subsection (c) of this Section for the hospital year equals or exceeds the relevant hospital entity's estimated property tax liability, without regard to any property tax exemption granted under Section 15-86 of the Property Tax Code, for the calendar year in which exemption or renewal of exemption  is sought. For purposes of making the calculations required by this subsection (b), if the relevant hospital entity is a hospital owner that owns more than one hospital, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities relating to the hospital that includes the subject property, and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to the properties comprising that hospital. In the case of a multi-state hospital system or hospital affiliate, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities that occur in Illinois and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to its property located in Illinois.
(c)  The following services and activities shall be considered for purposes of making the calculations required by subsection (b):
(1) Charity care.  Free or discounted services     provided pursuant to the relevant hospital entity's financial assistance policy, measured at cost, including discounts provided under the Hospital Uninsured Patient Discount Act.
(2) Health services to low-income and underserved     individuals.  Other unreimbursed costs of the relevant hospital entity for providing without charge, paying for, or subsidizing goods, activities, or services for the purpose of addressing the health of low-income or underserved individuals.  Those activities or services may include, but are not limited to: financial or in-kind support to affiliated or unaffiliated hospitals, hospital affiliates, community clinics, or programs that treat low-income or underserved individuals; paying for  or subsidizing health care professionals who care for low-income or underserved individuals; providing or subsidizing outreach or educational services to low-income or underserved individuals for disease management and prevention;  free or subsidized goods, supplies, or services needed by low-income or underserved individuals because of their medical condition; and prenatal or childbirth outreach to low-income or underserved persons.
(3) Subsidy of State or local governments.  Direct or     indirect financial or in-kind subsidies of State or local governments by the relevant hospital entity that pay for or subsidize activities or programs related to health care for low-income or underserved individuals.
(4) Support for State health care programs for     low-income individuals.  At the election of the hospital applicant for each applicable year, either (A) 10% of payments to the relevant hospital entity and  any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) under Medicaid or other means-tested programs, including, but not limited to, General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program or (B) the amount of subsidy provided by the relevant hospital entity and  any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) to State or local government in treating Medicaid recipients and recipients of means-tested programs, including but not limited to General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program.  The amount of subsidy for purposes of this item (4) is calculated in the same manner as  unreimbursed costs are calculated for Medicaid and other means-tested government programs in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly.
(5) Dual-eligible subsidy.  The amount of subsidy     provided to government by treating dual-eligible Medicare/Medicaid patients.  The amount of subsidy for purposes of this item (5) is calculated by multiplying the relevant hospital entity's unreimbursed costs for Medicare, calculated in the same manner as determined in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly, by the relevant hospital entity's ratio of dual-eligible patients to total Medicare patients.
(6) Relief of the burden of government  related to       health care.  Except to the extent otherwise taken into account in this subsection, the portion of unreimbursed costs of the relevant hospital entity attributable to providing, paying for, or subsidizing goods, activities, or services that relieve the burden of government related to health care for low-income individuals.  Such activities or services shall include, but are not limited to, providing emergency, trauma, burn, neonatal, psychiatric, rehabilitation, or other special services; providing medical education; and conducting medical research or training of health care professionals.  The portion of those unreimbursed costs attributable to benefiting low-income individuals shall be determined using the ratio calculated by adding the relevant hospital entity's costs attributable to charity care, Medicaid, other means-tested government programs, Medicare patients with disabilities under age 65, and dual-eligible Medicare/Medicaid patients and dividing that total by the relevant hospital entity's total costs.  Such costs for the numerator and denominator shall be determined by multiplying  gross charges by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I).  In the case of emergency services, the ratio shall be calculated using costs (gross charges multiplied by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I)) of patients treated in the relevant hospital entity's emergency department.
(7) Any other activity by the relevant hospital     entity that the Department determines relieves the burden of government or addresses the health of low-income or underserved individuals.
(d)  The hospital applicant shall include information in its exemption application establishing that it satisfies the requirements of subsection (b).  For purposes of making the calculations required by subsection (b), the hospital applicant may for each year elect to use either (1) the value of the services or activities listed in subsection (e) for the hospital year or (2) the average value of those services or activities for the 3 fiscal years ending with the hospital year.  If the relevant hospital entity has been in operation for less than 3 completed fiscal years, then the latter calculation, if elected, shall be performed on a pro rata basis.
(e) For purposes of making the calculations required by this Section:
(1) particular services or activities eligible for     consideration under any of the paragraphs (1) through (7) of subsection (c) may not be counted under more than one of those paragraphs; and
(2) the amount of unreimbursed costs and the amount     of subsidy shall not be reduced by restricted or unrestricted payments received by the relevant hospital entity as contributions deductible under Section 170(a) of the Internal Revenue Code.
(f) (Blank).
(g) Estimation of Exempt Property Tax Liability.  The estimated property tax liability used for the determination in subsection (b) shall be calculated as follows:
(1) "Estimated property tax liability" means the     estimated dollar amount of property tax that would be owed, with respect to the exempt portion of each of the relevant hospital entity's properties that are already fully or partially exempt, or for which an exemption in whole or in part is currently being sought, and then aggregated as applicable, as if the exempt portion of those properties were subject to tax, calculated with respect to each such property by multiplying:
(A) the lesser of (i) the actual assessed value,         if any, of the portion of the property for which an exemption is sought or (ii) an estimated assessed value of the exempt portion of such property as determined in item (2) of this subsection (g), by
(B) the applicable State equalization rate         (yielding the equalized assessed value), by
(C)  the applicable tax rate.
(2) The estimated assessed value of the exempt     portion of the property equals the sum of (i) the estimated fair market value of buildings on the property, as determined in accordance with subparagraphs (A) and (B) of this item (2), multiplied by the applicable assessment factor, and (ii) the estimated assessed value of the land portion of the property, as determined in accordance with subparagraph (C).
(A) The "estimated fair market value of buildings         on the property" means the replacement value of any exempt portion of buildings on the property, minus depreciation, determined utilizing the cost replacement method whereby the exempt square footage of all such buildings is multiplied by the replacement cost per square foot for Class A Average  building found in the most recent edition of the Marshall & Swift Valuation Services Manual, adjusted by any appropriate current cost and local multipliers.
(B) Depreciation, for purposes of calculating the         estimated fair market value of buildings on the property, is applied by utilizing a weighted mean life for the buildings based on original construction and assuming a 40-year life for hospital buildings and the applicable life for other types of buildings as specified in the American Hospital Association publication "Estimated Useful Lives of Depreciable Hospital Assets". In the case of hospital buildings, the remaining life is divided by 40 and this ratio is multiplied by the replacement cost of the buildings to obtain an estimated fair market value of buildings.  If a hospital building is older than 35 years, a remaining life of 5 years for residual value is assumed; and if a building is less than 8 years old, a remaining life of 32 years is assumed.
(C) The estimated assessed value of the land         portion of the property shall be determined by multiplying (i) the per square foot average of the assessed values of three parcels of land (not including farm land, and excluding the assessed value of the improvements thereon) reasonably comparable to the property, by (ii) the number of square feet comprising the exempt portion of the property's land square footage.
(3) The assessment factor, State equalization rate,     and tax rate (including any special factors such as Enterprise Zones) used in calculating the estimated property tax liability shall be for the most recent year that is publicly available from the applicable chief county assessment officer or officers at least 90 days before the end of the hospital year.
(4) The method utilized to calculate estimated     property tax liability for purposes of this Section 15-86 shall not be utilized for the actual valuation, assessment, or taxation of property pursuant to the Property Tax Code.
(h)  For the purpose of this Section, the following terms shall have the meanings set forth below:
(1) "Hospital" means any institution, place,     building, buildings on a campus, or other health care facility located in Illinois that is licensed under the Hospital Licensing Act and has a hospital owner.
(2) "Hospital owner" means a not-for-profit     corporation that is the titleholder of a hospital, or the owner of the beneficial interest in an Illinois land trust that is the titleholder of a hospital.
(3)  "Hospital affiliate" means any corporation,     partnership, limited partnership, joint venture, limited liability company, association or other organization, other than a hospital owner, that directly or indirectly controls, is controlled by, or is under common control with one or more hospital owners and that supports, is supported by, or acts in furtherance of the exempt health care purposes of at least one of those hospital owners' hospitals.
(4) "Hospital system" means a hospital and one or     more other hospitals or hospital affiliates related by common control or ownership.
(5) "Control" relating to hospital owners, hospital     affiliates, or hospital systems means possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the entity, whether through ownership of assets, membership interest, other voting or governance rights, by contract or otherwise.
(6) "Hospital applicant" means a hospital owner or     hospital affiliate that files an application for an exemption or renewal of exemption  under this Section.
(7) "Relevant hospital entity" means (A) the hospital     owner, in the case of a hospital applicant that is a hospital owner, and (B) at the election of a hospital applicant that is a hospital affiliate, either (i) the hospital affiliate or (ii) the hospital system to which the hospital applicant belongs, including any hospitals or hospital affiliates that are related by common control or ownership.
(8) "Subject property" means property used for the     calculation under subsection (b) of this Section.
(9) "Hospital year" means the fiscal year of the     relevant hospital entity, or the fiscal year of one of the hospital owners in the hospital system if the relevant hospital entity is a hospital system with members with different fiscal years, that ends in the year for which the exemption is sought.
(i) It is the intent of the General Assembly that any exemptions taken, granted, or renewed under this Section prior to the effective date of this amendatory Act of the 100th General Assembly are hereby validated.
(j) It is the intent of the General Assembly that the exemption under this Section applies on a continuous basis. If this amendatory Act of the 102nd General Assembly takes effect after July 1, 2022, any exemptions taken, granted, or renewed under this Section on or after July 1, 2022 and prior to the effective date of this amendatory Act of the 102nd General Assembly are hereby validated.
(k) This Section is exempt from the provisions of Section 3-55.
(Source: P.A. 102-700, eff. 4-19-22.)
(Text of Section from P.A. 102-886)
Sec. 3-8. Hospital exemption.
(a)  Until July 1, 2027, tangible personal property sold to or used by a hospital owner that owns one or more hospitals licensed under the Hospital Licensing Act or operated under the University of Illinois Hospital Act, or a hospital affiliate that is not already exempt under another provision of this Act  and meets the criteria for an exemption under this Section, is exempt from taxation under this Act.
(b)  A hospital owner or hospital affiliate satisfies the conditions for an exemption under this Section if the value of qualified services or activities listed in subsection (c) of this Section for the hospital year equals or exceeds the relevant hospital entity's estimated property tax liability, without regard to any property tax exemption granted under Section 15-86 of the Property Tax Code, for the calendar year in which exemption or renewal of exemption  is sought. For purposes of making the calculations required by this subsection (b), if the relevant hospital entity is a hospital owner that owns more than one hospital, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities relating to the hospital that includes the subject property, and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to the properties comprising that hospital. In the case of a multi-state hospital system or hospital affiliate, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities that occur in Illinois and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to its property located in Illinois.
(c)  The following services and activities shall be considered for purposes of making the calculations required by subsection (b):
(1) Charity care.  Free or discounted services     provided pursuant to the relevant hospital entity's financial assistance policy, measured at cost, including discounts provided under the Hospital Uninsured Patient Discount Act.
(2) Health services to low-income and underserved     individuals.  Other unreimbursed costs of the relevant hospital entity for providing without charge, paying for, or subsidizing goods, activities, or services for the purpose of addressing the health of low-income or underserved individuals.  Those activities or services may include, but are not limited to: financial or in-kind support to affiliated or unaffiliated hospitals, hospital affiliates, community clinics, or programs that treat low-income or underserved individuals; paying for  or subsidizing health care professionals who care for low-income or underserved individuals; providing or subsidizing outreach or educational services to low-income or underserved individuals for disease management and prevention;  free or subsidized goods, supplies, or services needed by low-income or underserved individuals because of their medical condition; and prenatal or childbirth outreach to low-income or underserved persons.
(3) Subsidy of State or local governments.  Direct or     indirect financial or in-kind subsidies of State or local governments by the relevant hospital entity that pay for or subsidize activities or programs related to health care for low-income or underserved individuals.
(4) Support for State health care programs for     low-income individuals.  At the election of the hospital applicant for each applicable year, either (A) 10% of payments to the relevant hospital entity and  any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) under Medicaid or other means-tested programs, including, but not limited to, General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program or (B) the amount of subsidy provided by the relevant hospital entity and  any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) to State or local government in treating Medicaid recipients and recipients of means-tested programs, including but not limited to General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program.  The amount of subsidy for purposes of this item (4) is calculated in the same manner as  unreimbursed costs are calculated for Medicaid and other means-tested government programs in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly.
(5) Dual-eligible subsidy.  The amount of subsidy     provided to government by treating dual-eligible Medicare/Medicaid patients.  The amount of subsidy for purposes of this item (5) is calculated by multiplying the relevant hospital entity's unreimbursed costs for Medicare, calculated in the same manner as determined in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly, by the relevant hospital entity's ratio of dual-eligible patients to total Medicare patients.
(6) Relief of the burden of government  related to       health care.  Except to the extent otherwise taken into account in this subsection, the portion of unreimbursed costs of the relevant hospital entity attributable to providing, paying for, or subsidizing goods, activities, or services that relieve the burden of government related to health care for low-income individuals.  Such activities or services shall include, but are not limited to, providing emergency, trauma, burn, neonatal, psychiatric, rehabilitation, or other special services; providing medical education; and conducting medical research or training of health care professionals.  The portion of those unreimbursed costs attributable to benefiting low-income individuals shall be determined using the ratio calculated by adding the relevant hospital entity's costs attributable to charity care, Medicaid, other means-tested government programs, Medicare patients with disabilities under age 65, and dual-eligible Medicare/Medicaid patients and dividing that total by the relevant hospital entity's total costs.  Such costs for the numerator and denominator shall be determined by multiplying  gross charges by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I).  In the case of emergency services, the ratio shall be calculated using costs (gross charges multiplied by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I)) of patients treated in the relevant hospital entity's emergency department.
(7) Any other activity by the relevant hospital     entity that the Department determines relieves the burden of government or addresses the health of low-income or underserved individuals.
(d)  The hospital applicant shall include information in its exemption application establishing that it satisfies the requirements of subsection (b).  For purposes of making the calculations required by subsection (b), the hospital applicant may for each year elect to use either (1) the value of the services or activities listed in subsection (e) for the hospital year or (2) the average value of those services or activities for the 3 fiscal years ending with the hospital year.  If the relevant hospital entity has been in operation for less than 3 completed fiscal years, then the latter calculation, if elected, shall be performed on a pro rata basis.
(e) For purposes of making the calculations required by this Section:
(1) particular services or activities eligible for     consideration under any of the paragraphs (1) through (7) of subsection (c) may not be counted under more than one of those paragraphs; and
(2) the amount of unreimbursed costs and the amount     of subsidy shall not be reduced by restricted or unrestricted payments received by the relevant hospital entity as contributions deductible under Section 170(a) of the Internal Revenue Code.
(f) (Blank).
(g) Estimation of Exempt Property Tax Liability.  The estimated property tax liability used for the determination in subsection (b) shall be calculated as follows:
(1) "Estimated property tax liability" means the     estimated dollar amount of property tax that would be owed, with respect to the exempt portion of each of the relevant hospital entity's properties that are already fully or partially exempt, or for which an exemption in whole or in part is currently being sought, and then aggregated as applicable, as if the exempt portion of those properties were subject to tax, calculated with respect to each such property by multiplying:
(A) the lesser of (i) the actual assessed value,         if any, of the portion of the property for which an exemption is sought or (ii) an estimated assessed value of the exempt portion of such property as determined in item (2) of this subsection (g), by
(B) the applicable State equalization rate         (yielding the equalized assessed value), by
(C)  the applicable tax rate.
(2) The estimated assessed value of the exempt     portion of the property equals the sum of (i) the estimated fair market value of buildings on the property, as determined in accordance with subparagraphs (A) and (B) of this item (2), multiplied by the applicable assessment factor, and (ii) the estimated assessed value of the land portion of the property, as determined in accordance with subparagraph (C).
(A) The "estimated fair market value of buildings         on the property" means the replacement value of any exempt portion of buildings on the property, minus depreciation, determined utilizing the cost replacement method whereby the exempt square footage of all such buildings is multiplied by the replacement cost per square foot for Class A Average  building found in the most recent edition of the Marshall & Swift Valuation Services Manual, adjusted by any appropriate current cost and local multipliers.
(B) Depreciation, for purposes of calculating the         estimated fair market value of buildings on the property, is applied by utilizing a weighted mean life for the buildings based on original construction and assuming a 40-year life for hospital buildings and the applicable life for other types of buildings as specified in the American Hospital Association publication "Estimated Useful Lives of Depreciable Hospital Assets". In the case of hospital buildings, the remaining life is divided by 40 and this ratio is multiplied by the replacement cost of the buildings to obtain an estimated fair market value of buildings.  If a hospital building is older than 35 years, a remaining life of 5 years for residual value is assumed; and if a building is less than 8 years old, a remaining life of 32 years is assumed.
(C) The estimated assessed value of the land         portion of the property shall be determined by multiplying (i) the per square foot average of the assessed values of three parcels of land (not including farm land, and excluding the assessed value of the improvements thereon) reasonably comparable to the property, by (ii) the number of square feet comprising the exempt portion of the property's land square footage.
(3) The assessment factor, State equalization rate,     and tax rate (including any special factors such as Enterprise Zones) used in calculating the estimated property tax liability shall be for the most recent year that is publicly available from the applicable chief county assessment officer or officers at least 90 days before the end of the hospital year.
(4) The method utilized to calculate estimated     property tax liability for purposes of this Section 15-86 shall not be utilized for the actual valuation, assessment, or taxation of property pursuant to the Property Tax Code.
(h)  For the purpose of this Section, the following terms shall have the meanings set forth below:
(1) "Hospital" means any institution, place,     building, buildings on a campus, or other health care facility located in Illinois that is licensed under the Hospital Licensing Act and has a hospital owner.
(2) "Hospital owner" means a not-for-profit     corporation that is the titleholder of a hospital, or the owner of the beneficial interest in an Illinois land trust that is the titleholder of a hospital.
(3)  "Hospital affiliate" means any corporation,     partnership, limited partnership, joint venture, limited liability company, association or other organization, other than a hospital owner, that directly or indirectly controls, is controlled by, or is under common control with one or more hospital owners and that supports, is supported by, or acts in furtherance of the exempt health care purposes of at least one of those hospital owners' hospitals.
(4) "Hospital system" means a hospital and one or     more other hospitals or hospital affiliates related by common control or ownership.
(5) "Control" relating to hospital owners, hospital     affiliates, or hospital systems means possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the entity, whether through ownership of assets, membership interest, other voting or governance rights, by contract or otherwise.
(6) "Hospital applicant" means a hospital owner or     hospital affiliate that files an application for an exemption or renewal of exemption  under this Section.
(7) "Relevant hospital entity" means (A) the hospital     owner, in the case of a hospital applicant that is a hospital owner, and (B) at the election of a hospital applicant that is a hospital affiliate, either (i) the hospital affiliate or (ii) the hospital system to which the hospital applicant belongs, including any hospitals or hospital affiliates that are related by common control or ownership.
(8) "Subject property" means property used for the     calculation under subsection (b) of this Section.
(9) "Hospital year" means the fiscal year of the     relevant hospital entity, or the fiscal year of one of the hospital owners in the hospital system if the relevant hospital entity is a hospital system with members with different fiscal years, that ends in the year for which the exemption is sought.
(i) It is the intent of the General Assembly that any exemptions taken, granted, or renewed under this Section prior to the effective date of this amendatory Act of the 100th General Assembly are hereby validated.
(j) It is the intent of the General Assembly that the exemption under this Section applies on a continuous basis. If this amendatory Act of the 102nd General Assembly takes effect after July 1, 2022, any exemptions taken, granted, or renewed under this Section on or after July 1, 2022 and prior to the effective date of this amendatory Act of the 102nd General Assembly are hereby validated.
(Source: P.A. 102-886, eff. 5-17-22.)
(35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
Sec. 3-10. Rate of tax. Unless otherwise provided in this Section,
the tax imposed by this Act is at the rate of 6.25% of the "selling price",
as defined in Section 2 of the Service Use Tax Act, of the tangible
personal property.  For the purpose of computing this tax, in no event
shall the "selling price" be less than the cost price to the serviceman of
the tangible personal property transferred.  The selling price of each item
of tangible personal property transferred as an incident of a sale of
service may be shown as a distinct and separate item on the serviceman's
billing to the service customer. If the selling price is not so shown, the
selling price of the tangible personal property is deemed to be 50% of the
serviceman's entire billing to the service customer.  When, however, a
serviceman contracts to design, develop, and produce special order machinery or
equipment, the tax imposed by this Act shall be based on the serviceman's
cost price of the tangible personal property transferred incident to the
completion of the contract.
Beginning on July 1, 2000 and through December 31, 2000, with respect to
motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
With respect to gasohol, as defined in the Use Tax Act, the tax imposed
by this Act shall apply to (i) 70% of the cost price of property
transferred as
an incident to the sale of service on or after January 1, 1990, and before
July 1, 2003, (ii) 80% of the selling price of property transferred as an
incident to the sale of service on or after July
1, 2003 and on or before July 1, 2017, (iii) 100%
of
the selling price of
property transferred as an incident to the sale of service after July 1, 2017 and prior to January 1, 2024, (iv) 90% of the selling price of
property transferred as an incident to the sale of service on or after January 1, 2024 and on or before December 31, 2028, and (v) 100% of the selling price of
property transferred as an incident to the sale of service after December 31, 2028.
If, at any time, however, the tax under this Act on sales of gasohol, as
defined in
the Use Tax Act, is imposed at the rate of 1.25%, then the
tax imposed by this Act applies to 100% of the proceeds of sales of gasohol
made during that time.
With respect to mid-range ethanol blends, as defined in Section 3-44.3 of the Use Tax Act, the tax imposed by this Act applies to (i)  80%
of the selling price of property transferred
as an incident to the sale of service on or after January 1, 2024 and on or before December 31, 2028 and (ii)  100% of the selling price of property transferred as an
incident to the sale of service
after December 31, 2028.  If, at any time, however, the tax under this Act on sales of mid-range ethanol blends is
imposed at the
rate of 1.25%, then the tax imposed by this Act applies to 100% of the selling price of mid-range ethanol blends transferred as an
incident to the sale of service during that time.
With respect to majority blended ethanol fuel, as defined in the Use Tax Act,
the
tax
imposed by this Act does not apply to the selling price of property transferred
as an incident to the sale of service on or after July 1, 2003 and on or before
December 31, 2028 but applies to 100% of the selling price thereafter.
With respect to biodiesel blends, as defined in the Use Tax Act, with no less
than 1% and no
more than 10% biodiesel, the tax imposed by this Act
applies to (i) 80% of the selling price of property transferred as an incident
to the sale of service on or after July 1, 2003 and on or before December 31, 2018
 and (ii) 100% of the proceeds of the selling price
after December 31, 2018 and before January 1, 2024. On and after January 1, 2024 and on or before December 31, 2030, the taxation of biodiesel, renewable diesel, and biodiesel blends shall be as provided in Section 3-5.1 of the Use Tax Act.
If, at any time, however, the tax under this Act on sales of biodiesel blends,
as
defined in the Use Tax Act, with no less than 1% and no more than 10% biodiesel
is imposed at the rate of 1.25%, then the
tax imposed by this Act applies to 100% of the proceeds of sales of biodiesel
blends with no less than 1% and no more than 10% biodiesel
made
during that time.
With respect to biodiesel, as defined in the Use Tax Act, and biodiesel
blends, as defined in the Use Tax Act, with
more than 10% but no more than 99% biodiesel material, the tax imposed by this
Act
does not apply to the proceeds of the selling price of property transferred
as an incident to the sale of service on or after July 1, 2003 and on or before
December 31, 2023. On and after January 1, 2024 and on or before December 31, 2030, the taxation of biodiesel, renewable diesel, and biodiesel blends shall be as provided in Section 3-5.1 of the Use Tax Act.
At the election of any registered serviceman made for each fiscal year,
sales of service in which the aggregate annual cost price of tangible
personal property transferred as an incident to the sales of service is
less than 35%, or 75% in the case of servicemen transferring prescription
drugs or servicemen engaged in graphic arts production, of the aggregate
annual total gross receipts from all sales of service, the tax imposed by
this Act shall be based on the serviceman's cost price of the tangible
personal property transferred incident to the sale of those services.
Until July 1, 2022 and beginning again on July 1, 2023, the tax shall be imposed at the rate of 1% on food prepared for
immediate consumption and transferred incident to a sale of service subject
to this Act or the Service Use Tax Act by an entity licensed under
the Hospital Licensing Act, the Nursing Home Care Act, the Assisted Living and Shared Housing Act, the ID/DD Community Care Act, the MC/DD Act, the Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued pursuant to the Life Care Facilities Act. Until July 1, 2022 and beginning again on July 1, 2023, the tax shall
also be imposed at the rate of 1% on food for human consumption that is
to be consumed off the
premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and
food that has been prepared for immediate consumption and is not
otherwise included in this paragraph).
Beginning on July 1, 2022 and until July 1, 2023, the tax shall be imposed at the rate of 0% on food prepared for immediate consumption and transferred incident to a sale of service subject to this Act or the Service Use Tax Act by an entity licensed under the Hospital Licensing Act, the Nursing Home Care Act, the Assisted Living and Shared Housing Act, the ID/DD Community Care Act, the MC/DD Act, the Specialized Mental Health Rehabilitation Act of 2013, or the Child Care Act of 1969, or an entity that holds a permit issued pursuant to the Life Care Facilities Act. Beginning July 1, 2022 and until July 1, 2023, the tax shall also be imposed at the rate of 0% on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption and is not otherwise included in this paragraph).
The tax shall also be imposed at the rate of 1% on prescription and
nonprescription medicines, drugs, medical appliances, products classified as Class III medical devices by the United States Food and Drug Administration that are used for cancer treatment pursuant to a prescription, as well as any accessories and components related to those devices, modifications to a motor
vehicle for the purpose of rendering it usable by a person with a disability, and
insulin, blood sugar testing materials, syringes, and needles used by human diabetics.  For the purposes of this Section, until September 1, 2009: the term "soft drinks" means any
complete, finished, ready-to-use, non-alcoholic drink, whether carbonated or
not, including, but not limited to, soda water, cola, fruit juice, vegetable
juice, carbonated water, and all other preparations commonly known as soft
drinks of whatever kind or description that are contained in any closed or
sealed can, carton, or container, regardless of size; but "soft drinks" does not
include coffee, tea, non-carbonated water, infant formula, milk or milk
products as defined in the Grade A Pasteurized Milk and Milk Products Act, or
drinks containing 50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this
Act, beginning September 1, 2009, "soft drinks" means non-alcoholic beverages that contain natural or artificial sweeteners.  "Soft drinks" does not include beverages that contain milk or milk products, soy, rice or similar milk substitutes, or greater than 50% of vegetable or fruit juice by volume.
Until August 1, 2009, and notwithstanding any other provisions of this Act, "food for human consumption
that is to be consumed off the premises where it is sold" includes all food
sold through a vending machine, except soft drinks and food products that are
dispensed hot from a vending machine, regardless of the location of the vending
machine. Beginning August 1, 2009, and notwithstanding any other provisions of this Act, "food for human consumption that is to be consumed off the premises where it is sold" includes all food sold through a vending machine, except soft drinks, candy, and food products that are dispensed hot from a vending machine, regardless of the location of the vending machine.
Notwithstanding any other provisions of this
Act, beginning September 1, 2009, "food for human consumption that is to be consumed off the premises where
it is sold" does not include candy.  For purposes of this Section, "candy" means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops, or pieces.  "Candy" does not include any preparation that contains flour or requires refrigeration.
Notwithstanding any other provisions of this
Act, beginning September 1, 2009, "nonprescription medicines and drugs"  does not include grooming and hygiene products.  For purposes of this Section, "grooming and hygiene products" includes, but is not limited to, soaps and cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and sun tan lotions and screens, unless those products are available by prescription only, regardless of whether the products meet the definition of "over-the-counter-drugs".  For the purposes of this paragraph, "over-the-counter-drug" means a drug for human use that contains a label that identifies the product as a drug as required by 21 CFR 201.66.  The "over-the-counter-drug" label includes:
(A) a "Drug Facts" panel; or
(B) a statement of the "active ingredient(s)" with a     list of those ingredients contained in the compound, substance or preparation.
Beginning on January 1, 2014 (the effective date of Public Act 98-122), "prescription and nonprescription medicines and drugs" includes medical cannabis purchased from a registered dispensing organization under the Compassionate Use of Medical Cannabis Program Act.
As used in this Section, "adult use cannabis" means cannabis subject to tax under the Cannabis Cultivation Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and does not include cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act.
(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
(35 ILCS 115/3-15) (from Ch. 120, par. 439.103-15)
Sec. 3-15. 
		Photoprocessing. 
		For purposes of the tax imposed on
photographs, negatives, and positives
by this Act, "photoprocessing" includes, but is not limited to,
developing films, positives, and negatives, and transparencies,
and tinting,
coloring, making, and enlarging prints.  Photoprocessing does not include
color separation, typesetting, and platemaking by photographic means
in the graphic arts industry and does not include any procedure, process, or
activity connected with the creation of the images on the film from which
the negatives, positives, or photographs are derived.  The charge for
in-house photoprocessing may not be less than the photoprocessor's cost
price of materials.  In transactions in which products of photoprocessing
are sold in conjunction with other services, if a charge for the
photoprocessing component is not separately stated, tax is imposed on 50%
of the entire selling price unless the sale is made by a professional
photographer, in which case tax is imposed on 10% of the
entire selling price.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 115/3-20) (from Ch. 120, par. 439.103-20)
Sec. 3-20. 
		Bullion. 
		For purposes of the exemption pertaining to
bullion, "bullion" means gold,
silver, or platinum in a bulk state with a purity of not less than 980
parts per 1,000.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 115/3-25) (from Ch. 120, par. 439.103-25)
Sec. 3-25. Computer software. For the purposes of this Act, "computer
software" means a set of statements, data,
or instructions to be used directly or indirectly in a computer in order to
bring about a certain result in any form in which those statements, data, or
instructions may be embodied, transmitted, or fixed, by any method now known
or hereafter developed, regardless of whether the statements, data, or
instructions are capable of being perceived by or communicated to humans,
and includes prewritten or canned software that is held for repeated sale
or lease, and all associated documentation and materials, if any, whether
contained on magnetic tapes, discs, cards, or other devices or media, but
does not include software that is adapted to specific individualized
requirements of a purchaser, custom-made and modified software designed for
a particular or limited use by a purchaser, or software used to operate
exempt machinery and equipment used in the process of manufacturing or
assembling tangible personal property for wholesale or retail sale or
lease. Software used to operate machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains is considered "computer software".    The provisions of this amendatory Act of the 98th General Assembly are declaratory of existing law as to the meaning and scope of this exemption.
For the purposes of this Act, computer software shall be considered to be
tangible personal property.
(Source: P.A. 98-583, eff. 1-1-14.)
(35 ILCS 115/3-27)
Sec. 3-27. 
		Prepaid telephone calling arrangements. 
		"Prepaid telephone
calling arrangements" mean the right to exclusively purchase telephone or
telecommunications services that must be paid for in advance and enable the
origination of one or more intrastate, interstate, or international telephone
calls or other telecommunications using an access number, an authorization
code, or both, whether manually or electronically dialed, for which payment to
a retailer must be made in advance, provided that, unless recharged, no further
service is provided once that prepaid amount of service has been consumed.
Prepaid telephone calling arrangements include the recharge of a prepaid
calling arrangement.  For purposes of this Section, "recharge" means the
purchase of additional prepaid telephone or telecommunications services whether
or not the purchaser acquires a different access number or authorization code.
For purposes of this Section, "telecommunications" means that term as defined
in Section 2 of the Telecommunications Excise Tax Act.
"Prepaid telephone calling arrangement" does not
include an arrangement whereby the service provider reflects the amount of
the purchase as a credit on an account for a customer under an existing
subscription plan.
(Source: P.A. 91-870, eff. 6-22-00.)
(35 ILCS 115/3-30) (from Ch. 120, par. 439.103-30)
Sec. 3-30. Graphic arts production. For purposes of this Act,
"graphic arts production" means the production of tangible personal property for wholesale or retail sale or lease by means of printing, including ink jet printing,
by one or more of the processes
described in Groups 323110 through 323122 of Subsector 323, Groups 511110
through 511199 of Subsector 511, and Group 512230 of Subsector 512 of the North
American Industry Classification System published by the U.S. Office of
Management and Budget, 1997 edition.  Graphic arts production does not include
(i) the transfer of images onto paper or other tangible personal property by
means of photocopying or (ii) final printed products in electronic or audio
form, including the production of software or audio-books. For the purpose of this Section, persons engaged primarily in the business of printing or publishing newspapers or magazines that qualify as newsprint and ink, by one or more of the processes described in Groups 511110 through 511199 of subsector 511 of the North American Industry Classification System published by the U.S. Office of Management and Budget, 1997 edition, are deemed to be engaged in graphic arts production.
(Source: P.A. 96-116, eff. 7-31-09.)
(35 ILCS 115/3-35) (from Ch. 120, par. 439.103-35)
Sec. 3-35. 
		Production agriculture. 
		For purposes of this Act,
"production agriculture" means the raising
of or the propagation of livestock; crops for sale for human consumption;
crops for livestock consumption; and production seed stock grown for the
propagation of feed grains and the husbandry of animals or for the purpose
of providing a food product, including the husbandry of blood stock as a
main source of providing a food product.
"Production agriculture" also means animal husbandry, floriculture,
aquaculture,
horticulture, and viticulture.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 115/3-40) (from Ch. 120, par. 439.103-40)
Sec. 3-40. 
		Collection. 
		The tax imposed by this Act
shall be paid to the Department by any serviceman
transferring tangible personal property as an incident to
a sale of service taxable under this Act.
If a serviceman has paid Service Occupation Tax to his or her supplier based
upon the cost price of tangible personal property before January 1,
1990, or in error on or after January 1,
1990, the serviceman, without filing any
formal claims with the Department, shall be allowed to take credit against
his or her Service Occupation Tax liability based upon the selling
price of that
property transferred in the course of providing service to the extent of the
amount of the tax so paid.
If any serviceman collects an amount (however designated) that purports
to reimburse the serviceman for Service Occupation Tax liability
measured by receipts or selling prices that are not subject to Service
Occupation Tax, or if any serviceman, in collecting an amount (however
designated) that purports to reimburse the
serviceman for Service
Occupation Tax liability measured by receipts or selling prices that are
subject to tax under this Act, collects more from the purchaser than the
serviceman's Service Occupation Tax liability in the transaction, the
purchaser shall have a legal right to claim a refund of that amount from
the serviceman. If, however, that amount is not refunded to the
purchaser by a serviceman for any
reason, the supplier or serviceman is liable to pay that amount to the
Department. This paragraph does not apply to an amount collected by the
supplier as Service Occupation Tax, nor to an amount collected by the
serviceman as reimbursement for the serviceman's Service Occupation Tax
liability on receipts or cost prices that are subject to tax under
this Act, as long as the collection is made in compliance with the tax
collection brackets prescribed by the Department in its rules and regulations.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 115/3-45) (from Ch. 120, par. 439.103-45)
Sec. 3-45. 
		Interstate commerce exemption. 
		No tax is imposed under
this Act upon the privilege of engaging in a business in interstate
commerce or otherwise when the business may not, under the Constitution and
statutes of the United States, be made the subject of taxation by this State.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 115/3-50) (from Ch. 120, par. 439.103-50)
Sec. 3-50. 
		Liability because of amendatory Act. 
		Revisions in Section
3 (now Sections 3 through 3-50) by Public Act
85-1135 do not affect
tax liability that arose before January 1, 1990.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 115/3-55)
Sec. 3-55. Sunset of exemptions, credits, and deductions.
(a) The application
of every exemption, credit, and deduction against tax imposed by this Act that
becomes law after the effective date of this amendatory Act of 1994 shall be
limited by a reasonable and appropriate sunset date.  A taxpayer is not
entitled to take the exemption, credit, or deduction beginning on the sunset
date and thereafter. Except as provided in subsection (b) of this Section, if a reasonable and appropriate sunset date is not
specified in the Public Act that creates the exemption, credit, or deduction, a
taxpayer shall not be entitled to take the exemption, credit, or deduction
beginning 5 years after the effective date of the Public Act creating the
exemption, credit, or deduction and thereafter.
(b) Notwithstanding the provisions of subsection (a) of this Section, the sunset date of any exemption, credit, or deduction that is scheduled to expire in 2011, 2012, or 2013 by operation of this Section shall be extended by 5 years.
(Source: P.A. 97-636, eff. 6-1-12.)
(35 ILCS 115/4) (from Ch. 120, par. 439.104)
Sec. 4. 
		
		Evidence that tangible personal property was sold by any supplier
for delivery to a person residing or engaged in business in this State
shall be prima facie evidence that such tangible personal property was sold
for the purpose of resale as an incident to a sale of service taxable under
this Act.
(Source: Laws 1961, p. 1745.)
(35 ILCS 115/5) (from Ch. 120, par. 439.105)
Sec. 5. 
		
		Every supplier maintaining a place of business in this State and
making sales of tangible personal property for the purpose of resale as an
incident to the sales of service taxable under this Act (whether those
sales are made within or without this State) shall, when
collecting the tax as provided in Section 3-40 of this Act from
the serviceman, give to the serviceman (if demanded by the serviceman) a
receipt for the tax in the manner and form prescribed by
the Department. The receipt shall be sufficient to relieve the
serviceman from further liability for the tax to which the
receipt may refer. Each supplier shall list with the Department
the names and addresses of all of his or her agents operating in
this State and the location of any and all of his or her distribution
or sales houses, offices, or other places of business in this State.
(Source: P.A. 86-1475.)
(35 ILCS 115/6) (from Ch. 120, par. 439.106)
Sec. 6. 
		
		Any supplier maintaining a place of business in this State, if
required to register under the "Retailers' Occupation Tax Act", the "Use
Tax Act" or the "Service Use Tax Act", need not obtain an additional
Certificate of Registration under this Act, but shall be deemed to be
sufficiently registered by virtue of his being registered under the
"Retailers' Occupation Tax Act", the "Use Tax Act" or the "Service Use Tax
Act". Every supplier maintaining a place of business in this State, if not
required to register under the "Retailers' Occupation Tax Act", the "Use
Tax Act" or the "Service Use Tax Act", shall apply to the Department (upon
a form prescribed and furnished by the Department) for a Certificate of
Registration under this Act. Every serviceman maintaining a place of
business in this State, if not required to register under the "Retailers'
Occupation Tax Act", the "Use Tax Act" or the "Service Use Tax Act", and
desiring to or required to pay the tax imposed by this Act directly to the
Department, shall, except as provided in Section 10 of this Act, apply to
the Department (upon a form prescribed and furnished by the Department) for
a Certificate of Registration under this Act. In completing such
application, the applicant shall furnish such information as the Department
may reasonably require. Upon approval of an application for Certificate of
Registration, the Department shall issue, without charge, a Certificate of
Registration to the applicant. Such certificate of Registration shall be
displayed at the address which the applicant states in his application to
be the principal place of business or location from which he will act as a
supplier or serviceman in this State. If the applicant will act as a
supplier or serviceman in this State from other places of business or
locations, he shall list the addresses of such additional places of
business or locations in his application for Certificate of Registration,
and the Department shall issue a Sub-Certificate of Registration to the
applicant for each such additional place of business or location. Each
Sub-Certificate of Registration shall be conspicuously displayed at the
place for which it is issued. Such Sub-Certificate of Registration shall
bear the same registration number as that appearing upon the Certificate of
Registration to which such Sub-Certificate relates. Where a supplier or
serviceman operates more than one place of business which is subject to
registration under this Section and such businesses are substantially
different in character or are engaged in under different trade names or are
engaged in under other substantially dissimilar circumstances (so that it
is more practicable, from an accounting, auditing or bookkeeping
standpoint, for such businesses to be separately registered), the
Department may require or permit such person to apply for and obtain a
separate Certificate of Registration for each such business or for any of
such businesses instead of registering such person, as to all such
businesses, under a single Certificate of Registration supplemented by
related Sub-Certificates of Registration. Such Certificate of Registration
shall not be issued to any person who is in default to the State of
Illinois for moneys due under this Act.
The Department may, in its discretion, upon application, authorize the
collection of the tax herein imposed by any supplier or serviceman not
maintaining a place of business within this State, who, to the satisfaction
of the Department, furnishes adequate security to insure collection and
payment of the tax. Such supplier or serviceman shall be issued, without
charge, a permit to collect such tax. When so authorized, it shall be the
duty of such supplier or serviceman to collect the tax upon all tangible
personal property sold to his knowledge for the purpose of resale as an
incident to the sale of a service within this State, in the same manner and
subject to the same requirements including the furnishing of a receipt to
the serviceman (if demanded by the serviceman), as a supplier or serviceman
maintaining a place of business within this State. The receipt given to the
serviceman shall be sufficient to relieve him from further liability for
the tax to which such receipt may refer. Such permit may be revoked by the
Department as provided in this Act.
(Source: Laws 1965, p. 3723.)
(35 ILCS 115/7) (from Ch. 120, par. 439.107)
Sec. 7. 
		
		
		It is unlawful for any supplier to advertise or hold out or state to the
public or to any serviceman, directly or indirectly, that the tax or any
part thereof imposed by Section 3 hereof will be assumed or absorbed by the
supplier or that it will not be added to the selling price of the property
sold, or if added that it or any part thereof will be refunded other than
when the supplier refunds the selling price and tax because of the
merchandise's being returned to the supplier or other than when the
supplier credits or refunds the tax to the serviceman to support a claim
filed with the Department under this Act. Any person violating any of the
provisions of this Section within this State shall be guilty of a Class A
misdemeanor.
(Source: P.A. 77-2830.)
(35 ILCS 115/8) (from Ch. 120, par. 439.108)
Sec. 8. 
		
		The tax herein required to be collected by any supplier pursuant to
this Act, and any such tax collected by any supplier, shall constitute a
debt owed by the supplier to this State.
(Source: Laws 1961, p. 1745.)
(35 ILCS 115/9) (from Ch. 120, par. 439.109)
(Text of Section from P.A. 103-9)
Sec. 9. Each serviceman required or authorized to collect the tax
herein imposed shall pay to the Department the amount of such tax at the
time when he is required to file his return for the period during which
such tax was collectible, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or
$5 per calendar year, whichever is greater, which is allowed to reimburse
the serviceman for expenses incurred in collecting the tax, keeping
records, preparing and filing returns, remitting the tax and supplying data
to the Department on request. When determining the discount allowed under this Section, servicemen shall include the amount of tax that would have been due at the 1% rate but for the 0% rate imposed under this amendatory Act of the 102nd General Assembly. The discount under this Section is not allowed for the 1.25% portion of taxes paid on aviation fuel that is subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The discount allowed under this Section is allowed only for returns that are filed in the manner required by this Act. The Department may disallow the discount for servicemen whose certificate of registration is revoked at the time the return is filed, but only if the Department's decision to revoke the certificate of registration has become final.
Where such tangible personal property is sold under a conditional
sales contract, or under any other form of sale wherein the payment of
the principal sum, or a part thereof, is extended beyond the close of
the period for which the return is filed, the serviceman, in collecting
the tax may collect, for each tax return period, only the tax applicable
to the part of the selling price actually received during such tax return
period.
Except as provided hereinafter in this Section, on or before the twentieth
day of each calendar month, such serviceman shall file a
return for the preceding calendar month in accordance with reasonable
rules and regulations to be promulgated by the Department of Revenue.
Such return shall be filed on a form prescribed by the Department and
shall contain such information as the Department may reasonably require.  The return shall include the gross receipts which were received during the preceding calendar month or quarter on the following items upon which tax would have been due but for the 0% rate imposed under this amendatory Act of the 102nd General Assembly: (i) food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption); and (ii) food prepared for immediate consumption and transferred incident to a sale of service subject to this Act or the Service Use Tax Act by an entity licensed under the Hospital Licensing Act, the Nursing Home Care Act, the Assisted Living and Shared Housing Act, the ID/DD Community Care Act, the MC/DD Act, the Specialized Mental Health Rehabilitation Act of 2013, or the Child Care Act of 1969, or an entity that holds a permit issued pursuant to the Life Care Facilities Act.  The return shall also include the amount of tax that would have been due on the items listed in the previous sentence but for the 0% rate imposed under this amendatory Act of the 102nd General Assembly.
On and after January 1, 2018, with respect to servicemen whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act shall be filed electronically.  Servicemen who demonstrate that they do not have access to the Internet or demonstrate hardship in filing electronically may petition the Department to waive the electronic filing requirement.
The Department may require returns to be filed on a quarterly basis.
If so required, a return for each calendar quarter shall be filed on or
before the twentieth day of the calendar month following the end of such
calendar quarter.  The taxpayer shall also file a return with the
Department for each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business     from which he engages in business as a serviceman in this State;
3. The total amount of taxable receipts received by     him during the preceding calendar month, including receipts from charge and time sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of     this Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the     Department may require.
Each serviceman required or authorized to collect the tax herein imposed on aviation fuel acquired as an incident to the purchase of a service in this State during the preceding calendar month shall, instead of reporting and paying tax as otherwise required by this Section, report and pay such tax on a separate aviation fuel tax return.  The requirements related to the return shall be as otherwise provided in this Section.  Notwithstanding any other provisions of this Act to the contrary, servicemen transferring aviation fuel incident to sales of service shall file all aviation fuel tax returns and shall make all aviation fuel tax payments by electronic means in the manner and form required by the Department.  For purposes of this Section, "aviation fuel" means jet fuel and aviation gasoline.
If a taxpayer fails to sign a return within 30 days after the proper notice
and demand for signature by the Department, the return shall be considered
valid and any amount shown to be due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the contrary, servicemen subject to tax on cannabis shall file all cannabis tax returns and shall make all cannabis tax payments by electronic means in the manner and form required by the Department.
Prior to October 1, 2003, and on and after September 1, 2004 a serviceman may accept a Manufacturer's
Purchase Credit certification
from a purchaser in satisfaction
of Service Use Tax as provided in Section 3-70 of the
Service Use Tax Act if the purchaser provides
the
appropriate
documentation as required by Section 3-70 of the Service Use Tax Act.
A  Manufacturer's Purchase Credit certification, accepted prior to October 1,
2003 or on or after September 1, 2004 by a serviceman as
provided in Section 3-70 of the Service Use Tax Act, may be used by that
serviceman to satisfy Service Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject to tax from a
qualifying purchase.  A Manufacturer's Purchase Credit reported on any
original or amended return
filed under
this Act after October 20, 2003 for reporting periods prior to September 1, 2004 shall be disallowed.  Manufacturer's Purchase Credit reported on annual returns due on or after January 1, 2005 will be disallowed for periods prior to September 1, 2004.
No Manufacturer's
Purchase Credit may be used after September 30, 2003 through August 31, 2004 to
satisfy any
tax liability imposed under this Act, including any audit liability.
Beginning on July 1, 2023 and through December 31, 2032, a serviceman may accept a Sustainable Aviation Fuel Purchase Credit certification from an air common carrier-purchaser in satisfaction of Service Use Tax as provided in Section 3-72 of the Service Use Tax Act if the purchaser provides the appropriate documentation as required by Section 3-72 of the Service Use Tax Act. A Sustainable Aviation Fuel Purchase Credit certification accepted by a serviceman in accordance with this paragraph may be used by that serviceman to satisfy service occupation tax liability (but not in satisfaction of penalty or interest) in the amount claimed in the certification, not to exceed 6.25% of the receipts subject to tax from a sale of aviation fuel. In addition, for a sale of aviation fuel to qualify to earn the Sustainable Aviation Fuel Purchase Credit, servicemen must retain in their books and records a certification from the producer of the aviation fuel that the aviation fuel sold by the serviceman and for which a sustainable aviation fuel purchase credit was earned meets the definition of sustainable aviation fuel under Section 3-72 of the Service Use Tax Act. The documentation must include detail sufficient for the Department to determine the number of gallons of sustainable aviation fuel sold.
If the serviceman's average monthly tax liability to
the Department does not exceed $200, the Department may authorize his
returns to be filed on a quarter annual basis, with the return for
January, February and March of a given year being due by April 20 of
such year; with the return for April, May and June of a given year being
due by July 20 of such year; with the return for July, August and
September of a given year being due by October 20 of such year, and with
the return for October, November and December of a given year being due
by January 20 of the following year.
If the serviceman's average monthly tax liability to
the Department does not exceed $50, the Department may authorize his
returns to be filed on an annual basis, with the return for a given year
being due by January 20 of the following year.
Such quarter annual and annual returns, as to form and substance,
shall be subject to the same requirements as monthly returns.
Notwithstanding any other provision in this Act concerning the time within
which a serviceman may file his return, in the case of any serviceman who
ceases to engage in a kind of business which makes him responsible for filing
returns under this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after discontinuing such
business.
Beginning October 1, 1993, a taxpayer who has an average monthly tax
liability of $150,000 or more shall make all payments required by rules of the
Department by electronic funds transfer.  Beginning October 1, 1994, a taxpayer
who has an average monthly tax liability of $100,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 1995, a taxpayer who has an average monthly tax liability
of $50,000 or more shall make all payments required by rules of the Department
by electronic funds transfer.  Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all payments required by
rules of the Department by electronic funds transfer.  The term "annual tax
liability" shall be the sum of the taxpayer's liabilities under this Act, and
under all other State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year. The term "average
monthly tax liability" means
the sum of the taxpayer's liabilities under this Act, and under all other State
and local occupation and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12.
Beginning on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the Department of
Revenue Law shall make all payments required by rules of the Department by
electronic funds transfer.
Before August 1 of each year beginning in 1993, the Department shall
notify all taxpayers required to make payments by electronic funds transfer.
All taxpayers required to make payments by electronic funds transfer shall make
those payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic funds transfer may
make payments by electronic funds transfer with the
permission of the Department.
All taxpayers required to make payment by electronic funds transfer and
any taxpayers authorized to voluntarily make payments by electronic funds
transfer shall make those payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to effectuate a
program of electronic funds transfer and the requirements of this Section.
Where a serviceman collects the tax with respect to the selling price of
tangible personal property which he sells and the purchaser thereafter returns
such tangible personal property and the serviceman refunds the
selling price thereof to the purchaser, such serviceman shall also refund,
to the purchaser, the tax so collected from the purchaser.  When
filing his return for the period in which he refunds such tax to the
purchaser, the serviceman may deduct the amount of the tax so refunded by
him to the purchaser from any other Service Occupation Tax, Service Use
Tax, Retailers' Occupation Tax or Use Tax which such serviceman may be
required to pay or remit to the Department, as shown by such return,
provided that the amount of the tax to be deducted shall previously have
been remitted to the Department by such serviceman.  If the serviceman shall
not previously have remitted the amount of such tax to the Department,
he shall be entitled to no deduction hereunder upon refunding such tax
to the purchaser.
If experience indicates such action to be practicable, the Department
may prescribe and furnish a combination or joint return which will
enable servicemen, who are required to file returns
hereunder and also under the Retailers' Occupation Tax Act, the Use
Tax Act or the Service Use Tax Act, to furnish all the return
information required by all said Acts on the one form.
Where the serviceman has more than one business
registered with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each
registered business.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund the revenue realized for the
preceding month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall pay into
the County and Mass Transit District Fund 4% of the revenue realized
for the preceding month from the 6.25% general rate on sales of tangible personal property other than aviation fuel sold on or after December 1, 2019.  This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of motor fuel and
gasohol.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund 16% of the revenue realized for the
preceding month from the 6.25% general rate on transfers of
tangible personal property other than aviation fuel sold on or after December 1, 2019.  This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each month the Department shall pay into the State Aviation Program Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of aviation fuel, less an amount estimated by the Department to be required for refunds of the 20% portion of the tax on aviation fuel under this Act, which amount shall be deposited into the Aviation Fuel Sales Tax Refund Fund.  The Department shall only pay moneys into the State Aviation Program Fund and the Aviation Fuel Sales Tax Refund Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
Local Government Tax Fund 80% of the net revenue realized for the preceding
month from the 1.25% rate on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall pay into the Capital Projects Fund an amount that is equal to an amount estimated by the Department to represent 80% of the net revenue realized for the preceding month from the sale of candy, grooming and hygiene products, and soft drinks that had been taxed at a rate of 1% prior to September 1, 2009 but that are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall pay into the Underground Storage Tank Fund from the proceeds collected under this Act, the Use Tax Act, the Service Use Tax Act, and the Retailers' Occupation Tax Act an amount equal to the average monthly deficit in the Underground Storage Tank Fund during the prior year, as certified annually by the Illinois Environmental Protection Agency, but the total payment into the Underground Storage Tank Fund under this Act, the Use Tax Act, the Service Use Tax Act, and the Retailers' Occupation Tax Act shall not exceed $18,000,000 in any State fiscal year. As used in this paragraph, the "average monthly deficit" shall be equal to the difference between the average monthly claims for payment by the fund and the average monthly revenues deposited into the fund, excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys received by the Department under  the Use Tax Act, the Service Use Tax Act, this Act, and the Retailers' Occupation Tax Act, each month the Department shall deposit $500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department pursuant to
this Act, (a) 1.75% thereof shall be paid into the Build Illinois Fund and
(b) prior to July 1, 1989, 2.2% and on and after July 1, 1989, 3.8% thereof
shall be paid into the Build Illinois Fund; provided, however, that if in
any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required to be paid
into the Build Illinois Fund pursuant to Section 3 of the Retailers'
Occupation Tax Act, Section 9 of the Use Tax Act, Section 9 of the Service
Use Tax Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of 2.2% or 3.8%,
as the case may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall be less than the Annual
Specified Amount (as defined in Section 3 of the Retailers' Occupation Tax
Act), an amount equal to the difference shall be immediately paid into the
Build Illinois Fund from other moneys received by the Department pursuant
to the Tax Acts; and further provided, that if on the last business day of
any month the sum of (1) the Tax Act Amount required to be deposited into
the Build Illinois Account in the Build Illinois Fund during such month and
(2) the amount transferred during such month to the Build Illinois Fund
from the State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the difference
shall be immediately paid into the Build Illinois Fund from other moneys
received by the Department pursuant to the Tax Acts; and, further provided,
that in no event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund pursuant to this
clause (b) for any fiscal year in excess of the greater of (i) the Tax Act
Amount or (ii) the Annual Specified Amount for such fiscal year; and,
further provided, that the amounts payable into the Build Illinois Fund
under this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing Bonds
issued and outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income, to fully
provide, in accordance with such indenture, for the defeasance of or the
payment of the principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be issued thereafter
and all fees and costs payable with respect thereto, all as certified by
the Director of the
Bureau of the Budget (now Governor's Office of Management and Budget).  If
on the last business day of
any month in which Bonds are outstanding pursuant to the Build Illinois
Bond Act, the aggregate of the moneys deposited
in the Build Illinois Bond Account in the Build Illinois Fund in such month
shall be less than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond Retirement and
Interest Fund pursuant to Section 13 of the Build Illinois Bond Act, an
amount equal to such deficiency shall be immediately paid
from other moneys received by the Department pursuant to the Tax Acts
to the Build Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the preceding
sentence and shall reduce the amount otherwise payable for such fiscal year
pursuant to clause (b) of the preceding sentence.  The moneys received by
the Department pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge set forth
in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund as provided in
the preceding paragraph or in any amendment thereto hereafter enacted, the
following specified monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and Exposition
Authority provided under Section 8.25f of the State Finance Act, but not in
excess of the sums designated as "Total Deposit", shall be deposited in the
aggregate from collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year
Total Deposit
1993
$0
1994
53,000,000
1995
58,000,000
1996
61,000,000
1997
64,000,000
1998
68,000,000
1999
71,000,000
2000
75,000,000
2001
80,000,000
2002
93,000,000
2003
99,000,000
2004
103,000,000
2005
108,000,000
2006
113,000,000
2007
119,000,000
2008
126,000,000
2009
132,000,000
2010
139,000,000
2011
146,000,000
2012
153,000,000
2013
161,000,000
2014
170,000,000
2015
179,000,000
2016
189,000,000
2017
199,000,000
2018
210,000,000
2019
221,000,000
2020
233,000,000
2021
300,000,000
2022
300,000,000
2023
300,000,000
2024
300,000,000
2025
300,000,000
2026
300,000,000
2027
375,000,000
2028
375,000,000
2029
375,000,000
2030
375,000,000
2031
375,000,000
2032
375,000,000
2033
375,000,000
2034
375,000,000
2035
375,000,000
2036
450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal year thereafter,
one-eighth of the amount requested in the certificate of the Chairman of
the Metropolitan Pier and Exposition Authority for that fiscal year, less
the amount deposited into the McCormick Place Expansion Project Fund by the
State Treasurer in the respective month under subsection (g) of Section 13
of the Metropolitan Pier and Exposition Authority Act, plus cumulative
deficiencies in the deposits required under this Section for previous
months and years, shall be deposited into the McCormick Place Expansion
Project Fund, until the full amount requested for the fiscal year, but not
in excess of the amount specified above as "Total Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects Fund, the Build Illinois Fund, and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, for aviation fuel sold on or after December 1, 2019, the Department shall each month deposit into the Aviation Fuel Sales Tax Refund Fund an amount estimated by the Department to be required for refunds of the 80% portion of the tax on aviation fuel under this Act. The Department shall only deposit moneys into the Aviation Fuel Sales Tax Refund Fund under this paragraph for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick
Place Expansion Project Fund
pursuant to the preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30, 2013, the Department shall each month pay into the
Illinois Tax Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of tangible
personal property.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any
amendments thereto hereafter enacted, beginning with the receipt of the first
report of taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy Infrastructure
Fund 80% of the net revenue realized from the 6.25% general rate on the
selling price of Illinois-mined coal that was sold to an eligible business.
For purposes of this paragraph, the term "eligible business" means a new
electric generating facility certified pursuant to Section 605-332 of the
Department of Commerce and
Economic Opportunity Law of the Civil Administrative
Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Energy Infrastructure Fund pursuant to the preceding paragraphs or in any amendments to this Section hereafter enacted, beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month, from the collections made under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act, the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue, an amount equal to 1/12 of 5% of 80% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and associated local occupation and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, beginning on July 1, 2018 the Department shall pay each month into the Downstate Public Transportation Fund the moneys required to be so paid under Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a public-private agreement between the public agency and private entity and completion of the civic build, beginning on July 1, 2023, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, the Department shall deposit the following specified deposits in the aggregate from collections under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, as required under Section 8.25g of the State Finance Act for distribution consistent with the Public-Private Partnership for Civic and Transit Infrastructure Project Act.  The moneys received by the Department pursuant to this Act and required to be deposited into the Civic and Transit Infrastructure Fund are subject to the pledge, claim and charge set forth in Section 25-55 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act. As used in this paragraph, "civic build", "private entity", "public-private agreement", and "public agency" have the meanings provided in Section 25-10 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year.............................Total Deposit
2024.....................................$200,000,000
2025.....................................$206,000,000
2026.....................................$212,200,000
2027.....................................$218,500,000
2028.....................................$225,100,000
2029.....................................$288,700,000
2030.....................................$298,900,000
2031.....................................$309,300,000
2032.....................................$320,100,000
2033.....................................$331,200,000
2034.....................................$341,200,000
2035.....................................$351,400,000
2036.....................................$361,900,000
2037.....................................$372,800,000
2038.....................................$384,000,000
2039.....................................$395,500,000
2040.....................................$407,400,000
2041.....................................$419,600,000
2042.....................................$432,200,000
2043.....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 16% of the net revenue realized  from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2022 and until July 1, 2023, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 32% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2023 and until July 1, 2024, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 48% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2024 and until July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 64% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning on July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 80% of the net revenue realized from the taxes imposed on motor fuel and gasohol.  As used in this paragraph "motor fuel" has the meaning given to that term in Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department pursuant to this
Act, 75% shall be paid into the General Revenue Fund of the State Treasury and 25% shall be reserved in a special account and used only for the transfer to the Common School Fund as part of the monthly transfer from the General Revenue Fund in accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a taxpayer,
require the taxpayer to prepare and file with the Department on a form
prescribed by the Department within not less than 60 days after receipt
of the notice an annual information return for the tax year specified in
the notice.  Such annual return to the Department shall include a
statement of gross receipts as shown by the taxpayer's last Federal income
tax return.  If the total receipts of the business as reported in the
Federal income tax return do not agree with the gross receipts reported to
the Department of Revenue for the same period, the taxpayer shall attach
to his annual return a schedule showing a reconciliation of the 2
amounts and the reasons for the difference.  The taxpayer's annual
return to the Department shall also disclose the cost of goods sold by
the taxpayer during the year covered by such return, opening and closing
inventories of such goods for such year, cost of goods used from stock
or taken from stock and given away by the taxpayer during such year, pay
roll information of the taxpayer's business during such year and any
additional reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly or annual
returns filed by such taxpayer as hereinbefore provided for in this
Section.
If the annual information return required by this Section is not
filed when and as required, the taxpayer shall be liable as follows:
(i) Until January 1, 1994, the taxpayer shall be     liable for a penalty equal to 1/6 of 1% of the tax due from such taxpayer under this Act during the period to be covered by the annual return for each month or fraction of a month until such return is filed as required, the penalty to be assessed and collected in the same manner as any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall     be liable for a penalty as described in Section 3-4 of the Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest ranking
manager shall sign the annual return to certify the accuracy of the
information contained therein.  Any person who willfully signs the
annual return containing false or inaccurate information shall be guilty
of perjury and punished accordingly.  The annual return form prescribed
by the Department shall include a warning that the person signing the
return may be liable for perjury.
The foregoing portion of this Section concerning the filing of an
annual information return shall not apply to a serviceman who is not
required to file an income tax return with the United States Government.
As soon as possible after the first day of each month, upon certification
of the Department of Revenue, the Comptroller shall order transferred and
the Treasurer shall transfer from the General Revenue Fund to the Motor
Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized
under this Act for the second preceding month.
Beginning April 1, 2000, this transfer is no longer required
and shall not be made.
Net revenue realized for a month shall be the revenue collected by the State
pursuant to this Act, less the amount paid out during that month as
refunds to taxpayers for overpayment of liability.
For greater simplicity of administration, it shall be permissible for
manufacturers, importers and wholesalers whose products are sold by numerous
servicemen in Illinois, and who wish to do so, to
assume the responsibility for accounting and paying to the Department
all tax accruing under this Act with respect to such sales, if the
servicemen who are affected do not make written objection to the
Department to this arrangement.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
(Text of Section from P.A. 103-363)
Sec. 9. Each serviceman required or authorized to collect the tax
herein imposed shall pay to the Department the amount of such tax at the
time when he is required to file his return for the period during which
such tax was collectible, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or
$5 per calendar year, whichever is greater, which is allowed to reimburse
the serviceman for expenses incurred in collecting the tax, keeping
records, preparing and filing returns, remitting the tax and supplying data
to the Department on request. When determining the discount allowed under this Section, servicemen shall include the amount of tax that would have been due at the 1% rate but for the 0% rate imposed under this amendatory Act of the 102nd General Assembly. The discount under this Section is not allowed for the 1.25% portion of taxes paid on aviation fuel that is subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The discount allowed under this Section is allowed only for returns that are filed in the manner required by this Act. The Department may disallow the discount for servicemen whose certificate of registration is revoked at the time the return is filed, but only if the Department's decision to revoke the certificate of registration has become final.
Where such tangible personal property is sold under a conditional
sales contract, or under any other form of sale wherein the payment of
the principal sum, or a part thereof, is extended beyond the close of
the period for which the return is filed, the serviceman, in collecting
the tax may collect, for each tax return period, only the tax applicable
to the part of the selling price actually received during such tax return
period.
Except as provided hereinafter in this Section, on or before the twentieth
day of each calendar month, such serviceman shall file a
return for the preceding calendar month in accordance with reasonable
rules and regulations to be promulgated by the Department of Revenue.
Such return shall be filed on a form prescribed by the Department and
shall contain such information as the Department may reasonably require.  The return shall include the gross receipts which were received during the preceding calendar month or quarter on the following items upon which tax would have been due but for the 0% rate imposed under this amendatory Act of the 102nd General Assembly: (i) food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption); and (ii) food prepared for immediate consumption and transferred incident to a sale of service subject to this Act or the Service Use Tax Act by an entity licensed under the Hospital Licensing Act, the Nursing Home Care Act, the Assisted Living and Shared Housing Act, the ID/DD Community Care Act, the MC/DD Act, the Specialized Mental Health Rehabilitation Act of 2013, or the Child Care Act of 1969, or an entity that holds a permit issued pursuant to the Life Care Facilities Act.  The return shall also include the amount of tax that would have been due on the items listed in the previous sentence but for the 0% rate imposed under this amendatory Act of the 102nd General Assembly.
On and after January 1, 2018, with respect to servicemen whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act shall be filed electronically.  Servicemen who demonstrate that they do not have access to the Internet or demonstrate hardship in filing electronically may petition the Department to waive the electronic filing requirement.
The Department may require returns to be filed on a quarterly basis.
If so required, a return for each calendar quarter shall be filed on or
before the twentieth day of the calendar month following the end of such
calendar quarter.  The taxpayer shall also file a return with the
Department for each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business     from which he engages in business as a serviceman in this State;
3. The total amount of taxable receipts received by     him during the preceding calendar month, including receipts from charge and time sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of     this Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the     Department may require.
Each serviceman required or authorized to collect the tax herein imposed on aviation fuel acquired as an incident to the purchase of a service in this State during the preceding calendar month shall, instead of reporting and paying tax as otherwise required by this Section, report and pay such tax on a separate aviation fuel tax return.  The requirements related to the return shall be as otherwise provided in this Section.  Notwithstanding any other provisions of this Act to the contrary, servicemen transferring aviation fuel incident to sales of service shall file all aviation fuel tax returns and shall make all aviation fuel tax payments by electronic means in the manner and form required by the Department.  For purposes of this Section, "aviation fuel" means jet fuel and aviation gasoline.
If a taxpayer fails to sign a return within 30 days after the proper notice
and demand for signature by the Department, the return shall be considered
valid and any amount shown to be due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the contrary, servicemen subject to tax on cannabis shall file all cannabis tax returns and shall make all cannabis tax payments by electronic means in the manner and form required by the Department.
Prior to October 1, 2003, and on and after September 1, 2004 a serviceman may accept a Manufacturer's
Purchase Credit certification
from a purchaser in satisfaction
of Service Use Tax as provided in Section 3-70 of the
Service Use Tax Act if the purchaser provides
the
appropriate
documentation as required by Section 3-70 of the Service Use Tax Act.
A  Manufacturer's Purchase Credit certification, accepted prior to October 1,
2003 or on or after September 1, 2004 by a serviceman as
provided in Section 3-70 of the Service Use Tax Act, may be used by that
serviceman to satisfy Service Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject to tax from a
qualifying purchase.  A Manufacturer's Purchase Credit reported on any
original or amended return
filed under
this Act after October 20, 2003 for reporting periods prior to September 1, 2004 shall be disallowed.  Manufacturer's Purchase Credit reported on annual returns due on or after January 1, 2005 will be disallowed for periods prior to September 1, 2004.
No Manufacturer's
Purchase Credit may be used after September 30, 2003 through August 31, 2004 to
satisfy any
tax liability imposed under this Act, including any audit liability.
If the serviceman's average monthly tax liability to
the Department does not exceed $200, the Department may authorize his
returns to be filed on a quarter annual basis, with the return for
January, February and March of a given year being due by April 20 of
such year; with the return for April, May and June of a given year being
due by July 20 of such year; with the return for July, August and
September of a given year being due by October 20 of such year, and with
the return for October, November and December of a given year being due
by January 20 of the following year.
If the serviceman's average monthly tax liability to
the Department does not exceed $50, the Department may authorize his
returns to be filed on an annual basis, with the return for a given year
being due by January 20 of the following year.
Such quarter annual and annual returns, as to form and substance,
shall be subject to the same requirements as monthly returns.
Notwithstanding any other provision in this Act concerning the time within
which a serviceman may file his return, in the case of any serviceman who
ceases to engage in a kind of business which makes him responsible for filing
returns under this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after discontinuing such
business.
Beginning October 1, 1993, a taxpayer who has an average monthly tax
liability of $150,000 or more shall make all payments required by rules of the
Department by electronic funds transfer.  Beginning October 1, 1994, a taxpayer
who has an average monthly tax liability of $100,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 1995, a taxpayer who has an average monthly tax liability
of $50,000 or more shall make all payments required by rules of the Department
by electronic funds transfer.  Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all payments required by
rules of the Department by electronic funds transfer.  The term "annual tax
liability" shall be the sum of the taxpayer's liabilities under this Act, and
under all other State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year. The term "average
monthly tax liability" means
the sum of the taxpayer's liabilities under this Act, and under all other State
and local occupation and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12.
Beginning on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the Department of
Revenue Law shall make all payments required by rules of the Department by
electronic funds transfer.
Before August 1 of each year beginning in 1993, the Department shall
notify all taxpayers required to make payments by electronic funds transfer.
All taxpayers required to make payments by electronic funds transfer shall make
those payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic funds transfer may
make payments by electronic funds transfer with the
permission of the Department.
All taxpayers required to make payment by electronic funds transfer and
any taxpayers authorized to voluntarily make payments by electronic funds
transfer shall make those payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to effectuate a
program of electronic funds transfer and the requirements of this Section.
Where a serviceman collects the tax with respect to the selling price of
tangible personal property which he sells and the purchaser thereafter returns
such tangible personal property and the serviceman refunds the
selling price thereof to the purchaser, such serviceman shall also refund,
to the purchaser, the tax so collected from the purchaser.  When
filing his return for the period in which he refunds such tax to the
purchaser, the serviceman may deduct the amount of the tax so refunded by
him to the purchaser from any other Service Occupation Tax, Service Use
Tax, Retailers' Occupation Tax or Use Tax which such serviceman may be
required to pay or remit to the Department, as shown by such return,
provided that the amount of the tax to be deducted shall previously have
been remitted to the Department by such serviceman.  If the serviceman shall
not previously have remitted the amount of such tax to the Department,
he shall be entitled to no deduction hereunder upon refunding such tax
to the purchaser.
If experience indicates such action to be practicable, the Department
may prescribe and furnish a combination or joint return which will
enable servicemen, who are required to file returns
hereunder and also under the Retailers' Occupation Tax Act, the Use
Tax Act or the Service Use Tax Act, to furnish all the return
information required by all said Acts on the one form.
Where the serviceman has more than one business
registered with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each
registered business.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund the revenue realized for the
preceding month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall pay into
the County and Mass Transit District Fund 4% of the revenue realized
for the preceding month from the 6.25% general rate on sales of tangible personal property other than aviation fuel sold on or after December 1, 2019.  This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of motor fuel and
gasohol.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund 16% of the revenue realized for the
preceding month from the 6.25% general rate on transfers of
tangible personal property other than aviation fuel sold on or after December 1, 2019.  This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each month the Department shall pay into the State Aviation Program Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of aviation fuel, less an amount estimated by the Department to be required for refunds of the 20% portion of the tax on aviation fuel under this Act, which amount shall be deposited into the Aviation Fuel Sales Tax Refund Fund.  The Department shall only pay moneys into the State Aviation Program Fund and the Aviation Fuel Sales Tax Refund Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
Local Government Tax Fund 80% of the net revenue realized for the preceding
month from the 1.25% rate on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall pay into the Capital Projects Fund an amount that is equal to an amount estimated by the Department to represent 80% of the net revenue realized for the preceding month from the sale of candy, grooming and hygiene products, and soft drinks that had been taxed at a rate of 1% prior to September 1, 2009 but that are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall pay into the Underground Storage Tank Fund from the proceeds collected under this Act, the Use Tax Act, the Service Use Tax Act, and the Retailers' Occupation Tax Act an amount equal to the average monthly deficit in the Underground Storage Tank Fund during the prior year, as certified annually by the Illinois Environmental Protection Agency, but the total payment into the Underground Storage Tank Fund under this Act, the Use Tax Act, the Service Use Tax Act, and the Retailers' Occupation Tax Act shall not exceed $18,000,000 in any State fiscal year. As used in this paragraph, the "average monthly deficit" shall be equal to the difference between the average monthly claims for payment by the fund and the average monthly revenues deposited into the fund, excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys received by the Department under  the Use Tax Act, the Service Use Tax Act, this Act, and the Retailers' Occupation Tax Act, each month the Department shall deposit $500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department pursuant to
this Act, (a) 1.75% thereof shall be paid into the Build Illinois Fund and
(b) prior to July 1, 1989, 2.2% and on and after July 1, 1989, 3.8% thereof
shall be paid into the Build Illinois Fund; provided, however, that if in
any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required to be paid
into the Build Illinois Fund pursuant to Section 3 of the Retailers'
Occupation Tax Act, Section 9 of the Use Tax Act, Section 9 of the Service
Use Tax Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of 2.2% or 3.8%,
as the case may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall be less than the Annual
Specified Amount (as defined in Section 3 of the Retailers' Occupation Tax
Act), an amount equal to the difference shall be immediately paid into the
Build Illinois Fund from other moneys received by the Department pursuant
to the Tax Acts; and further provided, that if on the last business day of
any month the sum of (1) the Tax Act Amount required to be deposited into
the Build Illinois Account in the Build Illinois Fund during such month and
(2) the amount transferred during such month to the Build Illinois Fund
from the State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the difference
shall be immediately paid into the Build Illinois Fund from other moneys
received by the Department pursuant to the Tax Acts; and, further provided,
that in no event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund pursuant to this
clause (b) for any fiscal year in excess of the greater of (i) the Tax Act
Amount or (ii) the Annual Specified Amount for such fiscal year; and,
further provided, that the amounts payable into the Build Illinois Fund
under this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing Bonds
issued and outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income, to fully
provide, in accordance with such indenture, for the defeasance of or the
payment of the principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be issued thereafter
and all fees and costs payable with respect thereto, all as certified by
the Director of the
Bureau of the Budget (now Governor's Office of Management and Budget).  If
on the last business day of
any month in which Bonds are outstanding pursuant to the Build Illinois
Bond Act, the aggregate of the moneys deposited
in the Build Illinois Bond Account in the Build Illinois Fund in such month
shall be less than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond Retirement and
Interest Fund pursuant to Section 13 of the Build Illinois Bond Act, an
amount equal to such deficiency shall be immediately paid
from other moneys received by the Department pursuant to the Tax Acts
to the Build Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the preceding
sentence and shall reduce the amount otherwise payable for such fiscal year
pursuant to clause (b) of the preceding sentence.  The moneys received by
the Department pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge set forth
in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund as provided in
the preceding paragraph or in any amendment thereto hereafter enacted, the
following specified monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and Exposition
Authority provided under Section 8.25f of the State Finance Act, but not in
excess of the sums designated as "Total Deposit", shall be deposited in the
aggregate from collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year
Total Deposit
1993
$0
1994
53,000,000
1995
58,000,000
1996
61,000,000
1997
64,000,000
1998
68,000,000
1999
71,000,000
2000
75,000,000
2001
80,000,000
2002
93,000,000
2003
99,000,000
2004
103,000,000
2005
108,000,000
2006
113,000,000
2007
119,000,000
2008
126,000,000
2009
132,000,000
2010
139,000,000
2011
146,000,000
2012
153,000,000
2013
161,000,000
2014
170,000,000
2015
179,000,000
2016
189,000,000
2017
199,000,000
2018
210,000,000
2019
221,000,000
2020
233,000,000
2021
300,000,000
2022
300,000,000
2023
300,000,000
2024
300,000,000
2025
300,000,000
2026
300,000,000
2027
375,000,000
2028
375,000,000
2029
375,000,000
2030
375,000,000
2031
375,000,000
2032
375,000,000
2033
375,000,000
2034
375,000,000
2035
375,000,000
2036
450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal year thereafter,
one-eighth of the amount requested in the certificate of the Chairman of
the Metropolitan Pier and Exposition Authority for that fiscal year, less
the amount deposited into the McCormick Place Expansion Project Fund by the
State Treasurer in the respective month under subsection (g) of Section 13
of the Metropolitan Pier and Exposition Authority Act, plus cumulative
deficiencies in the deposits required under this Section for previous
months and years, shall be deposited into the McCormick Place Expansion
Project Fund, until the full amount requested for the fiscal year, but not
in excess of the amount specified above as "Total Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects Fund, the Build Illinois Fund, and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, for aviation fuel sold on or after December 1, 2019, the Department shall each month deposit into the Aviation Fuel Sales Tax Refund Fund an amount estimated by the Department to be required for refunds of the 80% portion of the tax on aviation fuel under this Act. The Department shall only deposit moneys into the Aviation Fuel Sales Tax Refund Fund under this paragraph for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick
Place Expansion Project Fund
pursuant to the preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30, 2013, the Department shall each month pay into the
Illinois Tax Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of tangible
personal property.
Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, and the Illinois Tax Increment Fund pursuant to the preceding paragraphs or in any amendments to this Section hereafter enacted, beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month, from the collections made under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act, the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue, an amount equal to 1/12 of 5% of 80% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and associated local occupation and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the  Tax Compliance and Administration Fund as provided in this Section, beginning on July 1, 2018 the Department shall pay each month into the Downstate Public Transportation Fund the moneys required to be so paid under Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a public-private agreement between the public agency and private entity and completion of the civic build, beginning on July 1, 2023, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, the Department shall deposit the following specified deposits in the aggregate from collections under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, as required under Section 8.25g of the State Finance Act for distribution consistent with the Public-Private Partnership for Civic and Transit Infrastructure Project Act.  The moneys received by the Department pursuant to this Act and required to be deposited into the Civic and Transit Infrastructure Fund are subject to the pledge, claim and charge set forth in Section 25-55 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act. As used in this paragraph, "civic build", "private entity", "public-private agreement", and "public agency" have the meanings provided in Section 25-10 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year.............................Total Deposit
2024.....................................$200,000,000
2025.....................................$206,000,000
2026.....................................$212,200,000
2027.....................................$218,500,000
2028.....................................$225,100,000
2029.....................................$288,700,000
2030.....................................$298,900,000
2031.....................................$309,300,000
2032.....................................$320,100,000
2033.....................................$331,200,000
2034.....................................$341,200,000
2035.....................................$351,400,000
2036.....................................$361,900,000
2037.....................................$372,800,000
2038.....................................$384,000,000
2039.....................................$395,500,000
2040.....................................$407,400,000
2041.....................................$419,600,000
2042.....................................$432,200,000
2043.....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 16% of the net revenue realized  from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2022 and until July 1, 2023, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 32% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2023 and until July 1, 2024, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 48% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2024 and until July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 64% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning on July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 80% of the net revenue realized from the taxes imposed on motor fuel and gasohol.  As used in this paragraph "motor fuel" has the meaning given to that term in Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department pursuant to this
Act, 75% shall be paid into the General Revenue Fund of the State Treasury and 25% shall be reserved in a special account and used only for the transfer to the Common School Fund as part of the monthly transfer from the General Revenue Fund in accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a taxpayer,
require the taxpayer to prepare and file with the Department on a form
prescribed by the Department within not less than 60 days after receipt
of the notice an annual information return for the tax year specified in
the notice.  Such annual return to the Department shall include a
statement of gross receipts as shown by the taxpayer's last Federal income
tax return.  If the total receipts of the business as reported in the
Federal income tax return do not agree with the gross receipts reported to
the Department of Revenue for the same period, the taxpayer shall attach
to his annual return a schedule showing a reconciliation of the 2
amounts and the reasons for the difference.  The taxpayer's annual
return to the Department shall also disclose the cost of goods sold by
the taxpayer during the year covered by such return, opening and closing
inventories of such goods for such year, cost of goods used from stock
or taken from stock and given away by the taxpayer during such year, pay
roll information of the taxpayer's business during such year and any
additional reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly or annual
returns filed by such taxpayer as hereinbefore provided for in this
Section.
If the annual information return required by this Section is not
filed when and as required, the taxpayer shall be liable as follows:
(i) Until January 1, 1994, the taxpayer shall be     liable for a penalty equal to 1/6 of 1% of the tax due from such taxpayer under this Act during the period to be covered by the annual return for each month or fraction of a month until such return is filed as required, the penalty to be assessed and collected in the same manner as any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall     be liable for a penalty as described in Section 3-4 of the Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest ranking
manager shall sign the annual return to certify the accuracy of the
information contained therein.  Any person who willfully signs the
annual return containing false or inaccurate information shall be guilty
of perjury and punished accordingly.  The annual return form prescribed
by the Department shall include a warning that the person signing the
return may be liable for perjury.
The foregoing portion of this Section concerning the filing of an
annual information return shall not apply to a serviceman who is not
required to file an income tax return with the United States Government.
As soon as possible after the first day of each month, upon certification
of the Department of Revenue, the Comptroller shall order transferred and
the Treasurer shall transfer from the General Revenue Fund to the Motor
Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized
under this Act for the second preceding month.
Beginning April 1, 2000, this transfer is no longer required
and shall not be made.
Net revenue realized for a month shall be the revenue collected by the State
pursuant to this Act, less the amount paid out during that month as
refunds to taxpayers for overpayment of liability.
For greater simplicity of administration, it shall be permissible for
manufacturers, importers and wholesalers whose products are sold by numerous
servicemen in Illinois, and who wish to do so, to
assume the responsibility for accounting and paying to the Department
all tax accruing under this Act with respect to such sales, if the
servicemen who are affected do not make written objection to the
Department to this arrangement.
(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)
(35 ILCS 115/10a) (from Ch. 120, par. 439.110a)
Sec. 10a. 
		
		Notwithstanding any other provision to the contrary, any person
who is required to file a bond pursuant to any provision of this Act and
who has continuously complied with all provisions of this Act for 24 or
more consecutive months, shall no longer be required to comply with the
bonding provisions of this Act so long as such person continues his compliance
with the provisions of this Act.
(Source: P.A. 84-1408.)
(35 ILCS 115/11) (from Ch. 120, par. 439.111)
Sec. 11. 
Every supplier required or authorized to collect taxes hereunder
and every serviceman making sales of service in this State on or after the
effective date hereof shall keep such records, receipts, invoices and other
pertinent books, documents, memoranda and papers as the Department shall
require, in such form as the Department shall require.
The Department may adopt rules that establish requirements, including record
forms and formats, for records required to be kept and maintained by taxpayers.
For purposes of this Section, "records" means all data maintained by the
taxpayer, including data on paper, microfilm, microfiche or any type of
machine-sensible data compilation. For the purpose of
administering and enforcing the provisions hereof, the Department, or any
officer or employee of the Department designated, in writing, by the
Director thereof, may hold investigations and hearings not otherwise delegated to the Illinois Independent Tax Tribunal concerning any
matters covered herein and may examine any books, papers, records,
documents or memoranda of any supplier or serviceman bearing upon the sales
of services or the sales of tangible personal property to servicemen, and
may require the attendance of such person or any officer or employee of
such person, or of any person having knowledge of the facts, and may take
testimony and require proof for its information.
Any person who fails to keep books and records or fails to produce books and records for examination, as required by this Section and the rules adopted by the Department, is liable to pay to the Department, for deposit into the Tax Compliance and Administration Fund, a penalty of $1,000 for the first failure to keep books and records or produce books and records for examination and a penalty of $3,000 for each subsequent failure to keep books and records or produce books and records for examination as required by this Section and the rules adopted by the Department. The penalties imposed under this Section shall not apply if the taxpayer shows that he or she acted with ordinary business care and prudence. The Department may adopt rules to administer the penalties under this Section.
(Source: P.A. 100-940, eff. 8-17-18.)
(35 ILCS 115/12) (from Ch. 120, par. 439.112)
Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k,
1m,
1n, 1o, 2-6, 2-12, 2-54, 2a, 2b, 2c, 3 (except as to the disposition by the Department
of the
tax collected under this Act), 4 (except that the time limitation
provisions shall run from the date when the tax is due rather than from the
date when gross receipts are received), 5 (except that the time limitation
provisions on the issuance of notices of tax liability shall run from the
date when the tax is due rather than from the date when gross receipts are
received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5m, 5n, 6d, 7, 8, 9, 10, 11 and
12 of the "Retailers' Occupation Tax Act" which are not inconsistent with this
Act, and Section 3-7 of the Uniform Penalty and Interest Act shall
apply, as far as practicable, to the subject matter of this Act
to the same extent as if such provisions were included herein.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
(35 ILCS 115/13) (from Ch. 120, par. 439.113)
Sec. 13. 
		
		Any person (resident or non-resident) who incurs tax liability
under this Act as a serviceman in this State and who removes from this
State or conceals his whereabouts, shall be deemed thereby to appoint the
Secretary of State of Illinois his agent for the service of process or
notice in any judicial or administrative proceeding under this Act. Such
process or notice shall be served by the Department on the Secretary of
State by leaving, at the office of the Secretary of State at least 15 days
before the return day of such process or notice, a true and certified copy
thereof, and by sending to the taxpayer by registered or certified mail,
postage prepaid, a like and true certified copy, with an endorsement
thereon of the service upon said Secretary of State, addressed to such
taxpayer at his last known address.
Service of process or notice in the manner provided for in this Section,
under the circumstances specified in this Section, shall be of the same
force and validity as if served upon the taxpayer personally within this
State. Proof of such service upon the taxpayer in this State through the
Secretary of State as his agent and by mailing to the last known address of
the taxpayer may be made in such judicial or administrative proceeding by
the affidavit of the Director of Revenue, or by his duly authorized
representative who made such service, with a copy of the process or notice
that was so served attached to such affidavit.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 115/15) (from Ch. 120, par. 439.115)
Sec. 15. 
When the amount due is under $300, any person subject to the
provisions hereof who fails to file a return, or who violates any other
provision of Section 9 or Section 10 hereof, or who fails to keep books and
records as required herein, or who files a fraudulent return, or who wilfully
violates any Rule or Regulation of the Department for the administration and
enforcement of the provisions hereof, or any officer or agent of a corporation,
or manager, member, or agent of a limited liability company, subject hereto who
signs a fraudulent return filed on behalf of such corporation or limited
liability company, or any accountant or other agent who knowingly enters false
information on the return of any taxpayer under this Act, or any person who
violates any of the provisions of Sections 3, 5 or 7 hereof, or any purchaser
who obtains a registration number or resale number from the Department through
misrepresentation, or who represents to a seller that such purchaser has a
registration number or a resale number from the Department when he knows that
he does not, or who uses his registration number or resale number to make a
seller believe that he is buying tangible personal property for resale when
such purchaser in fact knows that this is not the case, is guilty of a Class 4
felony.
Any person who violates any provision of Section 6 hereof, or who
engages in the business of making sales of service after his Certificate of
Registration under this Act has been revoked in accordance with Section 12
of this Act, is guilty of a Class 4 felony. Each day any such person
is engaged in business in violation of Section 6, or after his Certificate of
Registration under this Act has been revoked, constitutes a separate offense.
When the amount due is under $300, any person who accepts money that
is due to the Department under this Act from a taxpayer for the purpose of
acting as the taxpayer's agent to make the payment to the Department, but
who fails to remit such payment to the Department when due is guilty of a
Class 4 felony. Any such person who purports to make such payment by
issuing or delivering a check or other order upon a real or fictitious
depository for the payment of money, knowing that it will not be paid by
the depository, shall be guilty of a deceptive practice in violation of
Section 17-1 of the Criminal Code of 2012.
When the amount due is $300 or more, any person subject to the
provisions hereof who fails to file a return, or who violates any other
provision of Section 9 or Section 10 hereof, or who fails to keep books and
records as required herein, or who files a fraudulent return, or who
wilfully violates any rule or regulation of the Department for the
administration and enforcement of the provisions hereof, or any officer or
agent of a corporation, or manager, member, or agent of a limited liability
company, subject hereto who signs a fraudulent return filed on behalf of such
corporation or limited liability company, or any accountant or other agent who
knowingly enters false information on the return of any taxpayer under this
Act, or any person who violates any of the provisions of Sections 3, 5 or 7
hereof, or any purchaser who obtains a registration number or resale number
from the Department through misrepresentation, or who represents to
a seller that such purchaser has a registration number or a resale number
from the Department when he knows that he does not, or who uses his
registration number or resale number to make a seller believe that he is
buying tangible personal property for resale when such purchaser in fact
knows that this is not the case, is guilty of a Class 3 felony.
When the amount due is $300 or more, any person who accepts money that is
due to the Department under this Act from a taxpayer for the purpose of
acting as the taxpayer's agent to make the payment to the
Department but who fails to remit such payment to the Department when due
is guilty of a Class 3 felony.  Any such person who purports to make such
payment by issuing or delivering a check or other order upon a real or
fictitious depository for the payment of money, knowing that it will not be
paid by the depository shall be guilty of a deceptive practice in violation
of Section 17-1 of the Criminal Code of 2012.
Any serviceman who collects or attempts to collect Service Occupation Tax,
measured by receipts which such serviceman knows are not subject to Service
Occupation Tax, or any serviceman who collects or attempts to collect an
amount (however designated) which purports to reimburse such serviceman for
Service Occupation Tax liability measured by receipts or selling prices which
such serviceman knows are not subject to Service Occupation Tax, or any
serviceman who knowingly over-collects or attempts to
over-collect Service Occupation Tax or an amount purporting to be
reimbursement for Service Occupation Tax liability in a transaction which
is subject to the tax that is imposed by this Act, shall be guilty of a
Class 4 felony for each such offense. This paragraph does not apply to an
amount collected by the serviceman as reimbursement for the serviceman's
Service Occupation Tax liability on receipts or selling prices which are
subject to tax under this Act, as long as such collection is made in
compliance with the tax collection brackets prescribed by the Department in
its Rules and Regulations.
Any person who knowingly sells, purchases, installs, transfers, possesses, uses, or accesses any automated sales suppression device, zapper, or phantom-ware in this State is guilty of a Class 3 felony.
For the purposes of this Section:
"Automated sales suppression device" or "zapper" means a software program that falsifies the electronic records of an electronic cash register or other point-of-sale system, including, but not limited to, transaction data and transaction reports.  The term includes the software program, any device that carries the software program, or an Internet link to the software program.
"Phantom-ware" means a hidden programming option embedded in the operating system of an electronic cash register or hardwired into an electronic cash register that can be used to create a second set of records or that can eliminate or manipulate transaction records in an electronic cash register.
"Electronic cash register" means a device that keeps a register or supporting documents through the use of an electronic device or computer system designed to record transaction data for the purpose of computing, compiling, or processing retail sales transaction data in any manner.
"Transaction data" includes: items purchased by a customer; the price of each item; a taxability determination for each item; a segregated tax amount for each taxed item; the amount of cash or credit tendered; the net amount returned to the customer in change; the date and time of the purchase; the name, address, and identification number of the vendor; and the receipt or invoice number of the transaction.
"Transaction report" means a report that documents, without limitation, the sales, taxes, or fees collected, media totals, and discount voids at an electronic cash register and that is printed on a cash register tape at the end of a day or shift, or a report that documents every action at an electronic cash register and is stored electronically.
A prosecution for any act in violation of this Section may be commenced
at any time within 3 years of the commission of that act.
This Section does not apply if the violation in a particular case also
constitutes a criminal violation of the Retailers' Occupation Tax Act or
the Use Tax Act.
(Source: P.A. 97-1150, eff. 1-25-13; 98-352, eff. 1-1-14.)
(35 ILCS 115/15.5) (from Ch. 120, par. 439.115a)
Sec. 15.5. 
		(Repealed).
(Source: Repealed by P.A. 87-205.)
(35 ILCS 115/16) (from Ch. 120, par. 439.116)
Sec. 16. 
		
		The tax herein imposed shall be in addition to all other
occupation or privilege taxes imposed by the State of Illinois or by any
municipal corporation or political subdivision thereof.
(Source: Laws 1961, p. 1745.)
(35 ILCS 115/17) (from Ch. 120, par. 439.117)
Sec. 17. 
If it shall appear that an amount of tax or penalty or interest has
been paid in error hereunder directly to the Department by a serviceman,
whether such amount be paid through a mistake of fact or an error of law, such
serviceman may file a claim for credit or refund with the Department. If it
shall appear that an amount of tax or penalty or interest has been paid in
error to the Department hereunder by a supplier who is required or
authorized to collect and remit the Service Occupation Tax, whether such
amount be paid through a mistake of fact or an error of law, such supplier
may file a claim for credit or refund with the Department, provided that no
credit shall be allowed nor any refund made for any amount paid by any such
supplier unless it shall appear that he bore the burden of such amount and
did not shift the burden thereof to anyone else (as in the case of a
duplicated tax payment which the supplier made to the Department and did
not collect from anyone else), or unless it shall appear that he or his
legal representative has unconditionally repaid such amount to his vendee
(1) who bore the burden thereof and has not shifted such burden directly or
indirectly in any manner whatsoever; (2) who, if he has shifted such
burden, has repaid unconditionally such amount to his own vendee, and (3)
who is not entitled to receive any reimbursement therefor from any other
source than from his supplier, nor to be relieved of such burden in any
other manner whatsoever.
Any credit or refund that is allowed under this Section shall bear interest
at the rate and in the manner specified in the Uniform Penalty and Interest
Act.
Any claim filed hereunder shall be filed upon a form prescribed and
furnished by the Department. The claim shall be signed by the claimant (or
by the claimant's legal representative if the claimant shall have died or
become a person under legal disability), or by a duly
authorized agent of the claimant or his or her legal representative.
A claim for credit or refund shall be considered to have been filed with
the Department on the date upon which it is received by the Department.
Upon receipt of any claim for credit or refund filed under this Act, any
officer or employee of the Department, authorized in writing by the
Director of Revenue to acknowledge receipt of such claims on behalf of the
Department, shall execute on behalf of the Department, and shall deliver or
mail to the claimant or his or her duly authorized agent, a written receipt,
acknowledging that the claim has been filed with the Department, describing
the claim in sufficient detail to identify it and stating the date upon
which the claim was received by the Department. Such written receipt shall
be prima facie evidence that the Department received the claim described in
such receipt and shall be prima facie evidence of the date when such claim
was received by the Department. In the absence of such a written receipt,
the records of the Department as to when the claim was received by the
Department, or as to whether or not the claim was received at all by the
Department, shall be deemed to be prima facie correct upon these questions
in the event of any dispute between the claimant (or his legal
representative) and the Department concerning these questions.
In case the Department determines that the claimant is entitled to a
refund, such refund shall be made only from the Aviation Fuel Sales Tax Refund Fund or from such appropriation as may be
available for that purpose, as appropriate. If it appears unlikely that the amount available
 would permit everyone having a claim allowed during the period
covered by such appropriation or from the Aviation Fuel Sales Tax Refund Fund, as appropriate, to elect to receive a cash refund, the
Department, by rule or regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as hardship cases.
(Source: P.A. 101-10, eff. 6-5-19.)
(35 ILCS 115/18) (from Ch. 120, par. 439.118)
Sec. 18. 
As soon as practicable after a claim for credit or refund is filed, the
Department shall examine the same and determine the amount of credit or
refund to which the claimant or the claimant's legal representative, in the
event that the claimant shall have died or become a person under legal disability,
is entitled
and shall, by its Notice of Tentative Determination of Claim, notify the
claimant or his or her legal representative of such determination, which
determination shall be prima facie correct. Proof of such determination by
the Department may be made at any hearing before the Department or the Illinois Independent Tax Tribunal, as applicable, or in any
legal proceeding by a reproduced copy of the Department's record relating
thereto, in the name of the Department under the certificate of the
Director of Revenue. Such reproduced copy shall, without further proof, be
admitted into evidence before the Department or in any legal proceeding and
shall be prima facie proof of the correctness of the Department's
determination, as shown therein. If such claimant, or the legal
representative of a deceased claimant or a claimant
who is under legal disability shall, within 60 days
after the Department's Notice of Tentative Determination of Claim, file a
protest thereto and request a hearing thereon, the Department shall give
notice to such claimant, or the legal representative of a deceased claimant
or a claimant who is under legal disability,
of the time and place fixed for such hearing, and
shall hold a hearing in conformity with the provisions of this Act, and
pursuant thereto shall issue its Final Determination of the amount, if any,
found to be due as a result of such hearing, to such claimant, or the legal
representative of a deceased claimant or a claimant
who is under legal disability.
If a protest to the Department's Notice of Tentative Determination of
Claim is not filed within 60 days and a request for a hearing
thereon is
not made as provided herein, the Notice shall thereupon become and
operate as a Final Determination; and, if the Department's Notice of
Tentative Determination, upon becoming a Final Determination, indicates no
amount due to the claimant, or, upon issuance of a credit or refund for the
amount, if any, found by the Department to be due, the claim in all its
aspects shall be closed and no longer open to protest, hearing, judicial
review, or by any other proceeding or action whatever, either before the
Department or in any court of this State. Claims for credit or refund
hereunder must be filed with and initially determined by the Department,
the remedy herein provided being exclusive; and no court shall have
jurisdiction to determine the merits of any claim except upon review as
provided in this Act.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 115/19) (from Ch. 120, par. 439.119)
Sec. 19. 
As to any claim for credit or refund filed with the Department on
or
after
each
January 1 and July 1,
no amount of
tax or penalty or interest erroneously paid (either in total or partial
liquidation of a tax or penalty or interest under this Act) more than 3
years prior to such January 1 and July 1, respectively, shall be credited
or
refunded, except that if both the Department and taxpayer have agreed to an
extension of time to issue a notice of tax liability as provided in Section 4
of the Retailers' Occupation Tax Act, such claim may be filed at any time prior
to the expiration of the period agreed upon.  Notwithstanding any other provision of this Act to the contrary, for any period included in a claim for credit or refund for which the statute of limitations for issuing a notice of tax liability under this Act will expire less than 6 months after the date a taxpayer files the claim for credit or refund, the statute of limitations is automatically extended for 6 months from the date it would have otherwise expired. No
claim shall be allowed for any amount paid to the Department, whether paid
voluntarily or involuntarily, if paid in total or partial liquidation of an
assessment which had become final before the claim for credit or refund to
recover the amount so paid is filed with the Department, or if paid in
total or partial liquidation of a judgment or order of court.
(Source: P.A. 102-40, eff. 6-25-21.)
(35 ILCS 115/20) (from Ch. 120, par. 439.120)
Sec. 20. 
		
		If it is determined that
the Department should issue a credit or
refund
hereunder, the Department may first apply the amount thereof against any
amount of tax or penalty or interest due hereunder, or under the Service
Use Tax Act, the Retailers' Occupation Tax Act, the Use
Tax Act,
any local occupation or use tax administered by the Department,
Section 4 of the Water Commission Act of
1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass
Transit District Act, or subsections (e), (f) and (g) of Section 4.03 of
the Regional Transportation Authority Act,
from the person entitled to such credit or refund. For this
purpose, if proceedings are pending to determine whether or not any tax or
penalty or interest is due hereunder, or under the Service Use Tax Act,
the Retailers' Occupation Tax Act, the Use Tax Act,
any local occupation or use tax administered by the Department,
Section 4 of the Water Commission Act of
1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass
Transit District Act, or subsections (e), (f) and (g) of Section 4.03 of
the Regional Transportation Authority Act,
from
such person, the Department may withhold issuance of the credit or refund
pending the final disposition of such proceedings and may apply such credit
or refund against any amount found to be due to the Department as a result
of such proceedings. The balance, if any, of the credit or refund shall be
issued to the person entitled thereto.
Any credit memorandum issued hereunder may be used by the authorized
holder thereof to pay any tax or penalty or interest due or to become due
under this Act, or under the Service Use Tax Act, the Retailers'
Occupation Tax Act, the Use Tax Act,
any local occupation or use tax administered by the Department,
Section 4 of the Water Commission Act of
1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass
Transit District Act, or subsections (e), (f) and (g) of Section 4.03 of
the Regional Transportation Authority Act,
from such holder. Subject to
reasonable rules of the Department, a credit memorandum issued hereunder
may be assigned by the holder thereof to any other person for use in paying
tax or penalty or interest which may be due or become due under this Act,
the Service Use Tax Act, the Retailers' Occupation Tax
Act, the Use Tax Act,
any local occupation or use tax administered by the Department,
Section 4 of the Water Commission Act of
1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass
Transit District Act, or subsections (e), (f) and (g) of Section 4.03 of
the Regional Transportation Authority Act,
from the assignee.
In any case in which there has been an erroneous refund of tax payable
under this Act, a notice of tax liability may be issued at any time within
3 years from the making of that refund, or within 5 years from the making
of that refund if it appears that any part of the refund was induced by
fraud or the misrepresentation of a material fact.  The amount of any
proposed assessment set forth in the notice shall be limited to the amount
of the erroneous refund.
(Source: P.A. 91-901, eff. 1-1-01.)
(35 ILCS 115/20a) (from Ch. 120, par. 439.120a)
Sec. 20a. 
The Illinois Administrative Procedure Act is hereby expressly
adopted and shall apply to all administrative rules and procedures of the
Department of Revenue under this Act, except that (1) paragraph (b) of Section
5-10 of the Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2) subparagraph (a)2 of
Section 5-10 of the Illinois Administrative Procedure Act does not apply to
forms established by the Department for use under this Act, and (3) the
provisions of Section 10-45 of the Illinois Administrative Procedure Act
regarding proposals for decision are excluded and not applicable to the
Department under this Act to the extent Section 10-45 applies to hearings not otherwise delegated to the Illinois Independent Tax Tribunal.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 115/21) (from Ch. 120, par. 439.121)
Sec. 21. 
		
		If any clause, sentence, Section, provision or part of this Act or
the application thereof to any person or circumstance shall be adjudged to
be unconstitutional, the remainder of this Act or its application to
persons or circumstances other than those to which it is held invalid,
shall not be affected thereby. In particular, if any provision which
exempts or has the effect of exempting some class of servicemen or some
kind of service from the tax imposed by this Act should be held to
constitute or to result in an invalid classification or to be
unconstitutional for some other reason, such provision shall be deemed to
be severable, with the remainder of this Act without said provision being
held constitutional.
(Source: Laws 1961, p. 1745.)