2023 Illinois Compiled Statutes › Chapter 35 - REVENUE › 35 ILCS 110/ - Service Use Tax Act.

(35 ILCS 110/1) (from Ch. 120, par. 439.31)
Sec. 1. 
		
		This Act shall be known and may be cited as the "Service Use Tax
Act", and the tax imposed by this Act may be referred to as the "Service
Use Tax".
(Source: Laws 1961, p. 1757.)
(35 ILCS 110/2) (from Ch. 120, par. 439.32)
Sec. 2. Definitions.  In this Act:
"Use" means the exercise by any person of any right or power
over tangible personal property incident to the ownership of that
property, but does not include the sale or use for demonstration by him
of that property in any form as tangible personal property in the
regular course of business.
"Use" does not mean the interim
use of
tangible personal property nor the physical incorporation of tangible
personal property, as an ingredient or constituent, into other tangible
personal property, (a) which is sold in the regular course of business
or (b) which the person incorporating such ingredient or constituent
therein has undertaken at the time of such purchase to cause to be
transported in interstate commerce to destinations outside the State of
Illinois.
"Purchased from a serviceman" means the acquisition of the ownership
of, or title to, tangible personal property through a sale of service.
"Purchaser" means any person who, through a sale of service, acquires
the ownership of, or title to, any tangible personal property.
"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 or her 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.
"Selling price" means the consideration for a sale valued in money
whether received in money or otherwise, including cash, credits and
service, and shall be determined without any deduction on account of the
serviceman's cost of the property sold, the cost of materials used,
labor or service cost or any other expense whatsoever, but does not
include interest or finance charges which appear as separate items on
the bill of sale or sales contract nor charges that are added to prices
by sellers on account of the seller's duty to collect, from the
purchaser, the tax that is imposed by this Act.
"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:
(1) a retail sale of tangible personal property     taxable under the Retailers' Occupation Tax Act or under the Use Tax Act.
(2) a sale of tangible personal property for the     purpose of resale made in compliance with Section 2c of the Retailers' Occupation Tax Act.
(3) 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.
(4) (blank).
(4a) 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 so long as so used by interstate carriers for hire, 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.
(4a-5) 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.
(5) 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 Use Tax or Service Occupation Tax, rather than Use Tax or Retailers' Occupation Tax. The exemption provided by this paragraph (5) 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 (5) 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 paragraph (5) is exempt from the provisions of Section 3-75.
(5a) 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 to a destination outside Illinois, for use outside Illinois.
(5b) 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.
(6) until July 1, 2003, a 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.
(7) 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%, 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 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 (5) 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 (5) 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
(5), 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 (5),
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 prepare a certificate of
exemption stating facts establishing the exemption, which certificate shall be available to the Department
for inspection or audit.  The Department shall prescribe the form of the
certificate.
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 (5) 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
(3) of this Section shall make tax-free purchases unless it has an active
exemption identification number issued by the Department.
The purchase, employment and transfer of such tangible personal
property as newsprint and ink for the primary purpose of conveying news
(with or without other information) is not a purchase, use or sale of
service or of tangible personal property within the meaning of this Act.
"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.
"Serviceman maintaining a place of business in this State", or any
like term, means and includes any serviceman:
(1) having or maintaining within this State, directly     or by a subsidiary, an office, distribution house, sales house, warehouse or other place of business, or any agent or other representative operating within this State under the authority of the serviceman or its subsidiary, irrespective of whether such place of business or agent or other representative is located here permanently or temporarily, or whether such serviceman or subsidiary is licensed to do business in this State;
(1.1) having a contract with a person located in this     State under which the person, for a commission or other consideration based on the sale of service by the serviceman, directly or indirectly refers potential customers to the serviceman by providing to the potential customers a promotional code or other mechanism that allows the serviceman to track purchases referred by such persons. Examples of mechanisms that allow the serviceman to track purchases referred by such persons include but are not limited to the use of a link on the person's Internet website, promotional codes distributed through the person's hand-delivered or mailed material, and promotional codes distributed by the person through radio or other broadcast media. The provisions of this paragraph (1.1) shall apply only if the cumulative gross receipts from sales of service by the serviceman to customers who are referred to the serviceman by all persons in this State under such contracts exceed $10,000 during the preceding 4 quarterly periods ending on the last day of March, June, September, and December; a serviceman meeting the requirements of this paragraph (1.1) shall be presumed to be maintaining a place of business in this State but may rebut this presumption by submitting proof that the referrals or other activities pursued within this State by such persons were not sufficient to meet the nexus standards of the United States Constitution during the preceding 4 quarterly periods;
(1.2) beginning July 1, 2011, having a contract with     a person located in this State under which:
(A) the serviceman sells the same or         substantially similar line of services as the person located in this State and does so using an identical or substantially similar name, trade name, or trademark as the person located in this State; and
(B) the serviceman provides a commission or other         consideration to the person located in this State based upon the sale of services by the serviceman.
The provisions of this paragraph (1.2) shall apply only     if the cumulative gross receipts from sales of service by the serviceman to customers in this State under all such contracts exceed $10,000 during the preceding 4 quarterly periods ending on the last day of March, June, September, and December;
(2) soliciting orders for tangible personal property     by means of a telecommunication or television shopping system (which utilizes toll free numbers) which is intended by the retailer to be broadcast by cable television or other means of broadcasting, to consumers located in this State;
(3) pursuant to a contract with a broadcaster or     publisher located in this State, soliciting orders for tangible personal property by means of advertising which is disseminated primarily to consumers located in this State and only secondarily to bordering jurisdictions;
(4) soliciting orders for tangible personal property     by mail if the solicitations are substantial and recurring and if the retailer benefits from any banking, financing, debt collection, telecommunication, or marketing activities occurring in this State or benefits from the location in this State of authorized installation, servicing, or repair facilities;
(5) being owned or controlled by the same interests     which own or control any retailer engaging in business in the same or similar line of business in this State;
(6) having a franchisee or licensee operating under     its trade name if the franchisee or licensee is required to collect the tax under this Section;
(7) pursuant to a contract with a cable television     operator located in this State, soliciting orders for tangible personal property by means of advertising which is transmitted or distributed over a cable television system in this State;
(8) engaging in activities in Illinois, which     activities in the state in which the supply business engaging in such activities is located would constitute maintaining a place of business in that state; or
(9) beginning October 1, 2018, making sales of     service to purchasers in Illinois from outside of Illinois if:
(A) the cumulative gross receipts from sales of         service to purchasers in Illinois are $100,000 or more; or
(B) the serviceman enters into 200 or more         separate transactions for sales of service to purchasers in Illinois.
The serviceman shall determine on a quarterly basis,     ending on the last day of March, June, September, and December, whether he or she meets the criteria of either subparagraph (A) or (B) of this paragraph (9) for the preceding 12-month period.  If the serviceman meets the criteria of either subparagraph (A) or (B) for a 12-month period, he or she is considered a serviceman maintaining a place of business in this State and is required to collect and remit the tax imposed under this Act and file returns for one year.  At the end of that one-year period, the serviceman shall determine whether the serviceman met the criteria of either subparagraph (A) or (B) during the preceding 12-month period.  If the serviceman met the criteria in either subparagraph (A) or (B) for the preceding 12-month period, he or she is considered a serviceman maintaining a place of business in this State and is required to collect and remit the tax imposed under this Act and file returns for the subsequent year.  If at the end of a one-year period a serviceman that was required to collect and remit the tax imposed under this Act determines that he or she did not meet the criteria in either subparagraph (A) or (B) during the preceding 12-month period, the serviceman subsequently shall determine on a quarterly basis, ending on the last day of March, June, September, and December, whether he or she meets the criteria of either subparagraph (A) or (B) for the preceding 12-month period.
Beginning January 1, 2020, neither the gross receipts     from nor the number of separate transactions for sales of service to purchasers in Illinois that a serviceman makes through a marketplace facilitator and for which the serviceman has received a certification from the marketplace facilitator pursuant to Section 2d of this Act shall be included for purposes of determining whether he or she has met the thresholds of this paragraph (9).
(10) Beginning January 1, 2020, a marketplace     facilitator, as defined in Section 2d of this Act. (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-587, eff. 6-4-18; 100-863, eff. 8-14-18; 101-9, Article 10, Section 10-15, eff. 6-5-19; 101-9, Article 25, Section 25-10,   eff. 6-5-19; 101-604, eff. 12-13-19.)
(35 ILCS 110/2a) (from Ch. 120, par. 439.32a)
Sec. 2a. 
		
		"Pollution control facilities" means any system, method,
construction, device or appliance appurtenant thereto used in this State
acquired as an incident to the purchase of a service from 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 or transfer of such tangible
personal property
as pollution control facilities is not a purchase, use or sale of service
or of tangible personal property within the meaning of this Act.
(Source: P.A. 93-24, eff. 6-20-03.)
(35 ILCS 110/2b) (from Ch. 120, par. 439.32b)
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. 82-672.)
(35 ILCS 110/2d)
Sec. 2d. Marketplace facilitators and marketplace servicemen.
(a) Definitions.  For purposes of this Section:
"Affiliate" means a person that, with respect to another person:  (i) has a direct or indirect ownership interest of more than 5% in the other person; or (ii) is related to the other person because a third person, or group of third persons who are affiliated with each other as defined in this subsection, holds a direct or indirect ownership interest of more than 5% in the related person.
"Marketplace" means a physical or electronic place, forum, platform, application or other method by which a marketplace serviceman makes or offers to make sales of service.
"Marketplace facilitator" means a person who, pursuant to an agreement with a marketplace serviceman, facilitates sales of service by that marketplace serviceman.  A person facilitates a sale of service by, directly or indirectly through one or more affiliates, doing both of the following:  (i) listing or otherwise making available a sale of service of the marketplace serviceman through a marketplace owned or operated by the marketplace facilitator; and (ii) processing sales of service for, or payments for sales of service by, marketplace servicemen.
"Marketplace serviceman" means a person that makes or offers to make a sale of service through a marketplace.
(b)  Beginning January 1, 2020, a marketplace facilitator who meets either of the following criteria is considered the serviceman for each sale of service made on the marketplace:
(1) the cumulative gross receipts from sales of     service to purchasers in Illinois by the marketplace facilitator and by marketplace servicemen are $100,000 or more; or
(2) the marketplace facilitator and marketplace     servicemen cumulatively enter into 200 or more separate transactions for the sale of service to purchasers in Illinois.
A marketplace facilitator shall determine on a quarterly basis, ending on the last day of March, June, September, and December, whether he or she meets the criteria of either paragraph (1) or (2) of this subsection (b) for the preceding 12-month period. If the marketplace facilitator meets the criteria of either paragraph (1) or (2) for a 12-month period, he or she is considered a serviceman maintaining a place of business in this State and is required to collect and remit the tax imposed under this Act and file returns for one year. At the end of that one-year period, the marketplace facilitator shall determine whether the marketplace facilitator met the criteria of either paragraph (1) or (2) during the preceding 12-month period. If the marketplace facilitator met the criteria in either paragraph (1) or (2) for the preceding 12-month period, he or she is considered a serviceman maintaining a place of business in this State and is required to collect and remit the tax imposed under this Act and file returns for the subsequent year. If, at the end of a one-year period, a marketplace facilitator that was required to collect and remit the tax imposed under this Act determines that he or she did not meet the criteria in either paragraph (1) or (2) during the preceding 12-month period, the marketplace facilitator shall subsequently determine on a quarterly basis, ending on the last day of March, June, September, and December, whether he or she meets the criteria of either paragraph (1) or (2) for the preceding 12-month period.
(c) A marketplace facilitator that meets either of the thresholds in subsection (b) of this Section is considered the serviceman for each sale of service made through its marketplace and is liable for collecting and remitting the tax under this Act on all such sales.  The marketplace facilitator has all the rights and duties, and is required to comply with the same requirements and procedures, as all other servicemen maintaining a place of business in this State who are registered or who are required to be registered to collect and remit the tax imposed by this Act.
(d)  A marketplace facilitator shall:
(1)  certify to each marketplace serviceman that the     marketplace facilitator assumes the rights and duties of a serviceman under this Act with respect to sales of service made by the marketplace serviceman through the marketplace; and
(2) collect taxes imposed by this Act as required by     Section 3-40 of this Act for sales of service made through the marketplace.
(e) A marketplace serviceman shall retain books and records for all sales of service made through a marketplace in accordance with the requirements of Section 11.
(f) A marketplace serviceman shall furnish to the marketplace facilitator information that is necessary for the marketplace facilitator to correctly collect and remit taxes for a sale of service.  The information may include a certification that an item transferred incident to a sale of service under this Act is taxable, not taxable, exempt from taxation, or taxable at a specified rate. A marketplace serviceman shall be held harmless for liability for the tax imposed under this Act when a marketplace facilitator fails to correctly collect and remit tax after having been provided with information by a marketplace serviceman to correctly collect and remit taxes imposed under this Act.
(g) Except as provided in subsection (h), if the marketplace facilitator demonstrates to the satisfaction of the Department that its failure to correctly collect and remit tax on a sale of service resulted from the marketplace facilitator's good faith reliance on incorrect or insufficient information provided by a marketplace serviceman, it shall be relieved of liability for the tax on that sale of service.  In this case, a marketplace serviceman is liable for any resulting tax due.
(h)  A marketplace facilitator and marketplace serviceman that are affiliates, as defined by subsection (a), are jointly and severally liable for tax liability resulting from a sale of service made by the affiliated marketplace serviceman through the marketplace.
(i) This Section does not affect the tax liability of a purchaser under this Act.
(j) The Department may adopt rules for the administration and enforcement of the provisions of this Section.
(Source: P.A. 101-9, eff. 6-5-19.)
(35 ILCS 110/3) (from Ch. 120, par. 439.33)
Sec. 3. Tax imposed. A tax is imposed upon the privilege of using in this
State
real or tangible personal property acquired as an incident to the
purchase of a service from a serviceman,
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. Purchases 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 110/3-5)
(Text of Section from P.A. 103-9, Article 5, Section 5-10)
Sec. 3-5. Exemptions. Use of the following tangible personal property
is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation, society,
association, foundation, institution, or organization, other than a limited
liability company, that is organized and operated as a not-for-profit service
enterprise for the benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a non-profit Illinois county fair
association for use in conducting, operating, or promoting the county fair.
(3) Personal property purchased by a not-for-profit arts
or cultural
organization that establishes, by proof required by the Department by rule,
that it has received an exemption under Section 501(c)(3) of the Internal
Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services.  These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Legal tender, currency, medallions, or gold or silver coinage issued
by the State of Illinois, the government of the United States of America,
or the government of any foreign country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and
replacement parts, both new and used, and including that manufactured on
special order or purchased for lease, certified by the purchaser to be used
primarily for graphic arts production.
Equipment includes chemicals or
chemicals acting as catalysts but only if
the chemicals or chemicals acting as catalysts effect a direct and immediate
change upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under Section 2 of this Act.
(6) Personal property purchased from a teacher-sponsored student
organization affiliated with an elementary or secondary school located
in Illinois.
(7) Farm machinery and equipment, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for production agriculture or State or federal agricultural
programs, including individual replacement parts for the machinery and
equipment, including machinery and equipment purchased for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but
excluding other motor vehicles required to be registered under the Illinois
Vehicle Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (7).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to,
soil testing sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and activities such as, but
not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals.  This item (7) is exempt
from the provisions of
Section 3-75.
(8) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment, or
storage in the conduct of its business as an air common carrier, for a
flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(9) Proceeds of mandatory service charges separately stated on
customers' bills for the purchase and consumption of food and beverages
acquired as an incident to the purchase of a service from a serviceman, to
the extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the employees who
participate directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service charge is imposed.
(10) Until July 1, 2003, oil field exploration, drilling, and production
equipment, including
(i) rigs and parts of rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and equipment purchased
for lease; but
excluding motor vehicles required to be registered under the Illinois
Vehicle Code.
(11) Proceeds from the sale of photoprocessing machinery and
equipment, including repair and replacement parts, both new and
used, including that manufactured on special order, certified by the
purchaser to be used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including
equipment purchased for lease, but excluding motor vehicles required to be
registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
 for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(13) Semen used for artificial insemination of livestock for direct
agricultural production.
(14) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (14) is exempt from the provisions of Section 3-75, and the exemption provided for under this item (14) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88) for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(15) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the
equipment, under a lease of one year or longer executed or in effect at the
time
the lessor would otherwise be subject to the tax imposed by this Act,
to a
hospital
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
If the
equipment is leased in a manner that does not qualify for
this exemption
or is used in any other non-exempt manner,
the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs.  No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not been
paid by the lessor.  If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor.  If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(16) Personal property purchased by a lessor who leases the
property, under
a
lease of one year or longer executed or in effect at the time
the lessor would otherwise be subject to the tax imposed by this Act,
to a governmental body
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
 If the
property is leased in a manner that does not qualify for
this exemption
or is used in any other non-exempt manner,
the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs.  No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not been
paid by the lessor.  If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor.  If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(17) Beginning with taxable years ending on or after December
31,
1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(18) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(19) Beginning July 1, 1999, game or game birds purchased at a "game
breeding
and hunting preserve area" as that term is
used in
the Wildlife Code.  This paragraph is exempt from the provisions
of
Section 3-75.
(20) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois Vehicle Code, that is donated to a corporation, limited liability
company, society, association, foundation, or institution that is determined by
the Department to be organized and operated exclusively for educational
purposes.  For purposes of this exemption, "a corporation, limited liability
company, society, association, foundation, or institution organized and
operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(21) Beginning January 1, 2000,  personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children.  This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity.  This paragraph is exempt
from the provisions
of Section 3-75.
(22) Beginning January 1, 2000
and through December 31, 2001, new or used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for machines used in
commercial, coin-operated
amusement
and vending business if a use or occupation tax is paid on the gross receipts
derived from
the use of the commercial, coin-operated amusement and vending machines.
This
paragraph
is exempt from the provisions of Section 3-75.
(23) Beginning August 23, 2001 and through June 30, 2016, food for human consumption that is to be consumed off the
premises
where it is sold (other than alcoholic beverages, soft drinks, and food that
has been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use, when
purchased for use by a person receiving medical assistance under Article V of
the Illinois Public Aid Code who resides in a licensed long-term care facility,
as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(24) Beginning on August 2, 2001 (the effective date of Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the equipment, under a lease of one year or longer executed or in effect at the
time the lessor would otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation Tax Act.  If the
equipment is leased in a manner that does not qualify for this exemption or is
used in any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may be, based on the
fair market value of the property at the time the nonqualifying use occurs.
No lessor shall collect or attempt to collect an amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not been
paid by the lessor.  If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor.  If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
This paragraph is exempt from the provisions of Section 3-75.
(25) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
personal property purchased by a lessor
who leases the property, under a lease of one year or longer executed or in
effect at the time the lessor would otherwise be subject to the tax imposed by
this Act, to a governmental body that has been issued an active tax exemption
identification number by the Department under Section 1g of the Retailers'
Occupation Tax Act.  If the property is leased in a manner that does not
qualify for this exemption or is used in any other nonexempt manner, the
lessor shall be liable for the tax imposed under this Act or the Use Tax Act,
as the case may be, based on the fair market value of the property at the time
the nonqualifying use occurs.  No lessor shall collect or attempt to collect
an amount (however designated) that purports to reimburse that lessor for the
tax imposed by this Act or the Use Tax Act, as the case may be, if the tax has
not been paid by the lessor.  If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a refund of that
amount from the lessor.  If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the Department.
This paragraph is exempt from the provisions of Section 3-75.
(26) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-75.
(27) Beginning January 1, 2010 and continuing through December 31, 2029, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft. However, until January 1, 2024, this exemption excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films.
Beginning January 1, 2010 and continuing through December 31, 2023, this exemption applies only to the use of qualifying tangible personal property transferred incident to the modification, refurbishment, completion, replacement, repair, or maintenance of aircraft by persons who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. From January 1, 2024 through December 31, 2029, this exemption applies only to the use of qualifying tangible personal property 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 exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (27) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (27) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(28) Tangible personal property purchased by a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall.  This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code.  This paragraph is exempt from the provisions of Section 3-75.
(29) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups.
(30) Tangible personal property transferred to a purchaser who is exempt from the tax imposed by this Act by operation of federal law. This paragraph is exempt from the provisions of Section 3-75.
(31) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant.  Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (31) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (31):
"Data center" means a building or a series of     buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
"Qualified tangible personal property" means:     electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center.  The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center.  To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
This item (31) is exempt from the provisions of Section 3-75.
(32) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (32) is exempt from the provisions of Section 3-75. As used in this item (32):
"Breast pump" means an electrically controlled or     manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
"Breast pump collection and storage supplies" means     items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
"Breast pump collection and storage supplies"     includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
"Breast pump collection and storage supplies" does     not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
"Breast pump kit" means a kit that: (1) contains no     more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
(33) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act.  This item (33) is exempt from the provisions of Section 3-75.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section 5-10, eff. 6-7-23.)
(Text of Section from P.A. 103-9, Article 15, Section 15-10)
Sec. 3-5. Exemptions. Use of the following tangible personal property
is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation, society,
association, foundation, institution, or organization, other than a limited
liability company, that is organized and operated as a not-for-profit service
enterprise for the benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a non-profit Illinois county fair
association for use in conducting, operating, or promoting the county fair.
(3) Personal property purchased by a not-for-profit arts
or cultural
organization that establishes, by proof required by the Department by rule,
that it has received an exemption under Section 501(c)(3) of the Internal
Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services.  These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Legal tender, currency, medallions, or gold or silver coinage issued
by the State of Illinois, the government of the United States of America,
or the government of any foreign country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and
replacement parts, both new and used, and including that manufactured on
special order or purchased for lease, certified by the purchaser to be used
primarily for graphic arts production.
Equipment includes chemicals or
chemicals acting as catalysts but only if
the chemicals or chemicals acting as catalysts effect a direct and immediate
change upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under Section 2 of this Act.
(6) Personal property purchased from a teacher-sponsored student
organization affiliated with an elementary or secondary school located
in Illinois.
(7) Farm machinery and equipment, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for production agriculture or State or federal agricultural
programs, including individual replacement parts for the machinery and
equipment, including machinery and equipment purchased for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but
excluding other motor vehicles required to be registered under the Illinois
Vehicle Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (7).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to,
soil testing sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and activities such as, but
not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals.
Beginning on January 1, 2024, farm machinery and equipment also includes electrical power generation equipment used primarily for production agriculture.
This item (7) is exempt
from the provisions of
Section 3-75.
(8) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment, or
storage in the conduct of its business as an air common carrier, for a
flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(9) Proceeds of mandatory service charges separately stated on
customers' bills for the purchase and consumption of food and beverages
acquired as an incident to the purchase of a service from a serviceman, to
the extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the employees who
participate directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service charge is imposed.
(10) Until July 1, 2003, oil field exploration, drilling, and production
equipment, including
(i) rigs and parts of rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and equipment purchased
for lease; but
excluding motor vehicles required to be registered under the Illinois
Vehicle Code.
(11) Proceeds from the sale of photoprocessing machinery and
equipment, including repair and replacement parts, both new and
used, including that manufactured on special order, certified by the
purchaser to be used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including
equipment purchased for lease, but excluding motor vehicles required to be
registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
 for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(13) Semen used for artificial insemination of livestock for direct
agricultural production.
(14) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (14) is exempt from the provisions of Section 3-75, and the exemption provided for under this item (14) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88) for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(15) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the
equipment, under a lease of one year or longer executed or in effect at the
time
the lessor would otherwise be subject to the tax imposed by this Act,
to a
hospital
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
If the
equipment is leased in a manner that does not qualify for
this exemption
or is used in any other non-exempt manner,
the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs.  No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not been
paid by the lessor.  If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor.  If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(16) Personal property purchased by a lessor who leases the
property, under
a
lease of one year or longer executed or in effect at the time
the lessor would otherwise be subject to the tax imposed by this Act,
to a governmental body
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
 If the
property is leased in a manner that does not qualify for
this exemption
or is used in any other non-exempt manner,
the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs.  No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not been
paid by the lessor.  If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor.  If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(17) Beginning with taxable years ending on or after December
31,
1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(18) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(19) Beginning July 1, 1999, game or game birds purchased at a "game
breeding
and hunting preserve area" as that term is
used in
the Wildlife Code.  This paragraph is exempt from the provisions
of
Section 3-75.
(20) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois Vehicle Code, that is donated to a corporation, limited liability
company, society, association, foundation, or institution that is determined by
the Department to be organized and operated exclusively for educational
purposes.  For purposes of this exemption, "a corporation, limited liability
company, society, association, foundation, or institution organized and
operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(21) Beginning January 1, 2000,  personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children.  This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity.  This paragraph is exempt
from the provisions
of Section 3-75.
(22) Beginning January 1, 2000
and through December 31, 2001, new or used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for machines used in
commercial, coin-operated
amusement
and vending business if a use or occupation tax is paid on the gross receipts
derived from
the use of the commercial, coin-operated amusement and vending machines.
This
paragraph
is exempt from the provisions of Section 3-75.
(23) Beginning August 23, 2001 and through June 30, 2016, food for human consumption that is to be consumed off the
premises
where it is sold (other than alcoholic beverages, soft drinks, and food that
has been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use, when
purchased for use by a person receiving medical assistance under Article V of
the Illinois Public Aid Code who resides in a licensed long-term care facility,
as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(24) Beginning on August 2, 2001 (the effective date of Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the equipment, under a lease of one year or longer executed or in effect at the
time the lessor would otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation Tax Act.  If the
equipment is leased in a manner that does not qualify for this exemption or is
used in any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may be, based on the
fair market value of the property at the time the nonqualifying use occurs.
No lessor shall collect or attempt to collect an amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not been
paid by the lessor.  If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor.  If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
This paragraph is exempt from the provisions of Section 3-75.
(25) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
personal property purchased by a lessor
who leases the property, under a lease of one year or longer executed or in
effect at the time the lessor would otherwise be subject to the tax imposed by
this Act, to a governmental body that has been issued an active tax exemption
identification number by the Department under Section 1g of the Retailers'
Occupation Tax Act.  If the property is leased in a manner that does not
qualify for this exemption or is used in any other nonexempt manner, the
lessor shall be liable for the tax imposed under this Act or the Use Tax Act,
as the case may be, based on the fair market value of the property at the time
the nonqualifying use occurs.  No lessor shall collect or attempt to collect
an amount (however designated) that purports to reimburse that lessor for the
tax imposed by this Act or the Use Tax Act, as the case may be, if the tax has
not been paid by the lessor.  If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a refund of that
amount from the lessor.  If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the Department.
This paragraph is exempt from the provisions of Section 3-75.
(26) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-75.
(27) Beginning January 1, 2010 and continuing through December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the use of qualifying tangible personal property transferred incident to the modification, refurbishment, completion, replacement, repair, or maintenance of aircraft by persons who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (27) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (27) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(28) Tangible personal property purchased by a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall.  This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code.  This paragraph is exempt from the provisions of Section 3-75.
(29) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups.
(30) Tangible personal property transferred to a purchaser who is exempt from the tax imposed by this Act by operation of federal law. This paragraph is exempt from the provisions of Section 3-75.
(31) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant.  Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (31) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (31):
"Data center" means a building or a series of     buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
"Qualified tangible personal property" means:     electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center.  The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center.  To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
This item (31) is exempt from the provisions of Section 3-75.
(32) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (32) is exempt from the provisions of Section 3-75. As used in this item (32):
"Breast pump" means an electrically controlled or     manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
"Breast pump collection and storage supplies" means     items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
"Breast pump collection and storage supplies"     includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
"Breast pump collection and storage supplies" does     not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
"Breast pump kit" means a kit that: (1) contains no     more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
(33) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act.  This item (33) is exempt from the provisions of Section 3-75.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 15, Section 15-10, eff. 6-7-23.)
(Text of Section from P.A. 103-154)
Sec. 3-5. Exemptions. Use of the following tangible personal property
is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation, society,
association, foundation, institution, or organization, other than a limited
liability company, that is organized and operated as a not-for-profit service
enterprise for the benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a non-profit Illinois county fair
association for use in conducting, operating, or promoting the county fair.
(3) Personal property purchased by a not-for-profit arts
or cultural
organization that establishes, by proof required by the Department by rule,
that it has received an exemption under Section 501(c)(3) of the Internal
Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services.  These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Legal tender, currency, medallions, or gold or silver coinage issued
by the State of Illinois, the government of the United States of America,
or the government of any foreign country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and
replacement parts, both new and used, and including that manufactured on
special order or purchased for lease, certified by the purchaser to be used
primarily for graphic arts production.
Equipment includes chemicals or
chemicals acting as catalysts but only if
the chemicals or chemicals acting as catalysts effect a direct and immediate
change upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under Section 2 of this Act.
(6) Personal property purchased from a teacher-sponsored student
organization affiliated with an elementary or secondary school located
in Illinois.
(7) Farm machinery and equipment, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for production agriculture or State or federal agricultural
programs, including individual replacement parts for the machinery and
equipment, including machinery and equipment purchased for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but
excluding other motor vehicles required to be registered under the Illinois
Vehicle Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (7).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to,
soil testing sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and activities such as, but
not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals.  This item (7) is exempt
from the provisions of
Section 3-75.
(8) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment, or
storage in the conduct of its business as an air common carrier, for a
flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(9) Proceeds of mandatory service charges separately stated on
customers' bills for the purchase and consumption of food and beverages
acquired as an incident to the purchase of a service from a serviceman, to
the extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the employees who
participate directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service charge is imposed.
(10) Until July 1, 2003, oil field exploration, drilling, and production
equipment, including
(i) rigs and parts of rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and equipment purchased
for lease; but
excluding motor vehicles required to be registered under the Illinois
Vehicle Code.
(11) Proceeds from the sale of photoprocessing machinery and
equipment, including repair and replacement parts, both new and
used, including that manufactured on special order, certified by the
purchaser to be used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including
equipment purchased for lease, but excluding motor vehicles required to be
registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
 for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(13) Semen used for artificial insemination of livestock for direct
agricultural production.
(14) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (14) is exempt from the provisions of Section 3-75, and the exemption provided for under this item (14) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88) for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(15) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the
equipment, under a lease of one year or longer executed or in effect at the
time
the lessor would otherwise be subject to the tax imposed by this Act,
to a
hospital
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
If the
equipment is leased in a manner that does not qualify for
this exemption
or is used in any other non-exempt manner,
the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs.  No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not been
paid by the lessor.  If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor.  If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(16) Personal property purchased by a lessor who leases the
property, under
a
lease of one year or longer executed or in effect at the time
the lessor would otherwise be subject to the tax imposed by this Act,
to a governmental body
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
 If the
property is leased in a manner that does not qualify for
this exemption
or is used in any other non-exempt manner,
the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs.  No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not been
paid by the lessor.  If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor.  If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(17) Beginning with taxable years ending on or after December
31,
1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(18) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(19) Beginning July 1, 1999, game or game birds purchased at a "game
breeding
and hunting preserve area" as that term is
used in
the Wildlife Code.  This paragraph is exempt from the provisions
of
Section 3-75.
(20) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois Vehicle Code, that is donated to a corporation, limited liability
company, society, association, foundation, or institution that is determined by
the Department to be organized and operated exclusively for educational
purposes.  For purposes of this exemption, "a corporation, limited liability
company, society, association, foundation, or institution organized and
operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(21) Beginning January 1, 2000,  personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children.  This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity.  This paragraph is exempt
from the provisions
of Section 3-75.
(22) Beginning January 1, 2000
and through December 31, 2001, new or used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for machines used in
commercial, coin-operated
amusement
and vending business if a use or occupation tax is paid on the gross receipts
derived from
the use of the commercial, coin-operated amusement and vending machines.
This
paragraph
is exempt from the provisions of Section 3-75.
(23) Beginning August 23, 2001 and through June 30, 2016, food for human consumption that is to be consumed off the
premises
where it is sold (other than alcoholic beverages, soft drinks, and food that
has been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use, when
purchased for use by a person receiving medical assistance under Article V of
the Illinois Public Aid Code who resides in a licensed long-term care facility,
as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(24) Beginning on August 2, 2001 (the effective date of Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the equipment, under a lease of one year or longer executed or in effect at the
time the lessor would otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation Tax Act.  If the
equipment is leased in a manner that does not qualify for this exemption or is
used in any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may be, based on the
fair market value of the property at the time the nonqualifying use occurs.
No lessor shall collect or attempt to collect an amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not been
paid by the lessor.  If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor.  If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
This paragraph is exempt from the provisions of Section 3-75.
(25) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
personal property purchased by a lessor
who leases the property, under a lease of one year or longer executed or in
effect at the time the lessor would otherwise be subject to the tax imposed by
this Act, to a governmental body that has been issued an active tax exemption
identification number by the Department under Section 1g of the Retailers'
Occupation Tax Act.  If the property is leased in a manner that does not
qualify for this exemption or is used in any other nonexempt manner, the
lessor shall be liable for the tax imposed under this Act or the Use Tax Act,
as the case may be, based on the fair market value of the property at the time
the nonqualifying use occurs.  No lessor shall collect or attempt to collect
an amount (however designated) that purports to reimburse that lessor for the
tax imposed by this Act or the Use Tax Act, as the case may be, if the tax has
not been paid by the lessor.  If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a refund of that
amount from the lessor.  If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the Department.
This paragraph is exempt from the provisions of Section 3-75.
(26) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-75.
(27) Beginning January 1, 2010 and continuing through December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the use of qualifying tangible personal property transferred incident to the modification, refurbishment, completion, replacement, repair, or maintenance of aircraft by persons who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (27) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (27) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(28) Tangible personal property purchased by a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall.  This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code.  This paragraph is exempt from the provisions of Section 3-75.
(29) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups.
(30) Tangible personal property transferred to a purchaser who is exempt from the tax imposed by this Act by operation of federal law. This paragraph is exempt from the provisions of Section 3-75.
(31) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant.  Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (31) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (31):
"Data center" means a building or a series of     buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
"Qualified tangible personal property" means:     electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center.  The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center.  To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
This item (31) is exempt from the provisions of Section 3-75.
(32) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (32) is exempt from the provisions of Section 3-75. As used in this item (32):
"Breast pump" means an electrically controlled or     manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
"Breast pump collection and storage supplies" means     items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
"Breast pump collection and storage supplies"     includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
"Breast pump collection and storage supplies" does     not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
"Breast pump kit" means a kit that: (1) contains no     more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
(33) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act.  This item (33) is exempt from the provisions of Section 3-75.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-154, eff. 6-30-23.)
(Text of Section from P.A. 103-384)
Sec. 3-5. Exemptions. Use of the following tangible personal property
is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation, society,
association, foundation, institution, or organization, other than a limited
liability company, that is organized and operated as a not-for-profit service
enterprise for the benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the purpose of resale by the
enterprise.
(2) Personal property purchased by a non-profit Illinois county fair
association for use in conducting, operating, or promoting the county fair.
(3) Personal property purchased by a not-for-profit arts
or cultural
organization that establishes, by proof required by the Department by rule,
that it has received an exemption under Section 501(c)(3) of the Internal
Revenue Code and that is organized and operated primarily for the
presentation
or support of arts or cultural programming, activities, or services.  These
organizations include, but are not limited to, music and dramatic arts
organizations such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils, visual arts organizations,
and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not
make tax-free purchases unless it has an active identification number issued by
the Department.
(4) Legal tender, currency, medallions, or gold or silver coinage issued
by the State of Illinois, the government of the United States of America,
or the government of any foreign country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including
repair and
replacement parts, both new and used, and including that manufactured on
special order or purchased for lease, certified by the purchaser to be used
primarily for graphic arts production.
Equipment includes chemicals or
chemicals acting as catalysts but only if
the chemicals or chemicals acting as catalysts effect a direct and immediate
change upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under Section 2 of this Act.
(6) Personal property purchased from a teacher-sponsored student
organization affiliated with an elementary or secondary school located
in Illinois.
(7) Farm machinery and equipment, both new and used, including that
manufactured on special order, certified by the purchaser to be used
primarily for production agriculture or State or federal agricultural
programs, including individual replacement parts for the machinery and
equipment, including machinery and equipment purchased for lease,
and including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural chemical and
fertilizer spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code,
but
excluding other motor vehicles required to be registered under the Illinois
Vehicle Code.
Horticultural polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and equipment under
this item (7).
Agricultural chemical tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price of the tender
is separately stated.
Farm machinery and equipment shall include precision farming equipment
that is
installed or purchased to be installed on farm machinery and equipment
including, but not limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders.
Precision farming equipment includes, but is not limited to,
soil testing sensors, computers, monitors, software, global positioning
and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers, sensors, software, and
related equipment used primarily in the
computer-assisted operation of production agriculture facilities, equipment,
and activities such as, but
not limited to,
the collection, monitoring, and correlation of
animal and crop data for the purpose of
formulating animal diets and agricultural chemicals.  This item (7) is exempt
from the provisions of
Section 3-75.
(8) Until June 30, 2013, fuel and petroleum products sold to or used by an air common
carrier, certified by the carrier to be used for consumption, shipment, or
storage in the conduct of its business as an air common carrier, for a
flight destined for or returning from a location or locations
outside the United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(9) Proceeds of mandatory service charges separately stated on
customers' bills for the purchase and consumption of food and beverages
acquired as an incident to the purchase of a service from a serviceman, to
the extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the employees who
participate directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service charge is imposed.
(10) Until July 1, 2003, oil field exploration, drilling, and production
equipment, including
(i) rigs and parts of rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and equipment purchased
for lease; but
excluding motor vehicles required to be registered under the Illinois
Vehicle Code.
(11) Proceeds from the sale of photoprocessing machinery and
equipment, including repair and replacement parts, both new and
used, including that manufactured on special order, certified by the
purchaser to be used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration, mining, off-highway hauling,
processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including
equipment purchased for lease, but excluding motor vehicles required to be
registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)
 for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(13) Semen used for artificial insemination of livestock for direct
agricultural production.
(14) Horses, or interests in horses, registered with and meeting the
requirements of any of the
Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States
Trotting Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (14) is exempt from the provisions of Section 3-75, and the exemption provided for under this item (14) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88) for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(15) Computers and communications equipment utilized for any
hospital
purpose
and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the
equipment, under a lease of one year or longer executed or in effect at the
time
the lessor would otherwise be subject to the tax imposed by this Act,
to a
hospital
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
If the
equipment is leased in a manner that does not qualify for
this exemption
or is used in any other non-exempt manner,
the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs.  No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not been
paid by the lessor.  If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor.  If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(16) Personal property purchased by a lessor who leases the
property, under
a
lease of one year or longer executed or in effect at the time
the lessor would otherwise be subject to the tax imposed by this Act,
to a governmental body
that has been issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax Act.
 If the
property is leased in a manner that does not qualify for
this exemption
or is used in any other non-exempt manner,
the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time the
non-qualifying use occurs.  No lessor shall collect or attempt to collect an
amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not been
paid by the lessor.  If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor.  If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
(17) Beginning with taxable years ending on or after December
31,
1995
and
ending with taxable years ending on or before December 31, 2004,
personal property that is
donated for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a manufacturer or retailer
that is registered in this State to a corporation, society, association,
foundation, or institution that has been issued a sales tax exemption
identification number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(18) Beginning with taxable years ending on or after December
31, 1995 and
ending with taxable years ending on or before December 31, 2004, personal
property that is used in the performance of infrastructure repairs in this
State, including but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer line extensions,
water distribution and purification facilities, storm water drainage and
retention facilities, and sewage treatment facilities, resulting from a State
or federally declared disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the declared disaster area
within 6 months after the disaster.
(19) Beginning July 1, 1999, game or game birds purchased at a "game
breeding
and hunting preserve area" as that term is
used in
the Wildlife Code.  This paragraph is exempt from the provisions
of
Section 3-75.
(20) A motor vehicle, as that term is defined in Section 1-146
of the
Illinois Vehicle Code, that is donated to a corporation, limited liability
company, society, association, foundation, or institution that is determined by
the Department to be organized and operated exclusively for educational
purposes.  For purposes of this exemption, "a corporation, limited liability
company, society, association, foundation, or institution organized and
operated
exclusively for educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful branches of
learning by methods common to public schools and that compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less than 6 weeks
duration and designed to prepare individuals to follow a trade or to pursue a
manual, technical, mechanical, industrial, business, or commercial
occupation.
(21) Beginning January 1, 2000,  personal property, including
food,
purchased through fundraising
events for the benefit of
a public or private elementary or
secondary school, a group of those schools, or one or more school
districts if the events are
sponsored by an entity recognized by the school district that consists
primarily of volunteers and includes
parents and teachers of the school children.  This paragraph does not apply
to fundraising
events (i) for the benefit of private home instruction or (ii)
for which the fundraising entity purchases the personal property sold at
the events from another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that
profits from the sale to the
fundraising entity.  This paragraph is exempt
from the provisions
of Section 3-75.
(22) Beginning January 1, 2000
and through December 31, 2001, new or used automatic vending
machines that prepare and serve hot food and beverages, including coffee, soup,
and
other items, and replacement parts for these machines.
Beginning January 1,
2002 and through June 30, 2003, machines and parts for machines used in
commercial, coin-operated
amusement
and vending business if a use or occupation tax is paid on the gross receipts
derived from
the use of the commercial, coin-operated amusement and vending machines.
This
paragraph
is exempt from the provisions of Section 3-75.
(23) Beginning August 23, 2001 and through June 30, 2016, food for human consumption that is to be consumed off the
premises
where it is sold (other than alcoholic beverages, soft drinks, and food that
has been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use, when
purchased for use by a person receiving medical assistance under Article V of
the Illinois Public Aid Code who resides in a licensed long-term care facility,
as defined in the Nursing Home Care Act, or in a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(24) Beginning on August 2, 2001 (the effective date of Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a lessor who leases
the equipment, under a lease of one year or longer executed or in effect at the
time the lessor would otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation Tax Act.  If the
equipment is leased in a manner that does not qualify for this exemption or is
used in any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may be, based on the
fair market value of the property at the time the nonqualifying use occurs.
No lessor shall collect or attempt to collect an amount (however
designated) that purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not been
paid by the lessor.  If a lessor improperly collects any such amount from the
lessee, the lessee shall have a legal right to claim a refund of that amount
from the lessor.  If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the Department.
This paragraph is exempt from the provisions of Section 3-75.
(25) Beginning
on August 2, 2001 (the effective date of Public Act 92-227),
personal property purchased by a lessor
who leases the property, under a lease of one year or longer executed or in
effect at the time the lessor would otherwise be subject to the tax imposed by
this Act, to a governmental body that has been issued an active tax exemption
identification number by the Department under Section 1g of the Retailers'
Occupation Tax Act.  If the property is leased in a manner that does not
qualify for this exemption or is used in any other nonexempt manner, the
lessor shall be liable for the tax imposed under this Act or the Use Tax Act,
as the case may be, based on the fair market value of the property at the time
the nonqualifying use occurs.  No lessor shall collect or attempt to collect
an amount (however designated) that purports to reimburse that lessor for the
tax imposed by this Act or the Use Tax Act, as the case may be, if the tax has
not been paid by the lessor.  If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a refund of that
amount from the lessor.  If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the Department.
This paragraph is exempt from the provisions of Section 3-75.
(26) Beginning January 1, 2008, tangible personal property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 3-75.
(27) Beginning January 1, 2010 and continuing through December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the use of qualifying tangible personal property transferred incident to the modification, refurbishment, completion, replacement, repair, or maintenance of aircraft by persons who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (27) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (27) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(28) Tangible personal property purchased by a public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall.  This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code.  This paragraph is exempt from the provisions of Section 3-75.
(29) Beginning January 1, 2017 and through December 31, 2026, menstrual pads, tampons, and menstrual cups.
(30) Tangible personal property transferred to a purchaser who is exempt from the tax imposed by this Act by operation of federal law. This paragraph is exempt from the provisions of Section 3-75.
(31) Qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant.  Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity shall grant a certificate of exemption under this item (31) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (31):
"Data center" means a building or a series of     buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
"Qualified tangible personal property" means:     electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center.  The term "qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center.  To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
This item (31) is exempt from the provisions of Section 3-75.
(32) Beginning July 1, 2022, breast pumps, breast pump collection and storage supplies, and breast pump kits. This item (32) is exempt from the provisions of Section 3-75. As used in this item (32):
"Breast pump" means an electrically controlled or     manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
"Breast pump collection and storage supplies" means     items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
"Breast pump collection and storage supplies"     includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
"Breast pump collection and storage supplies" does     not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
"Breast pump kit" means a kit that: (1) contains no     more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
(33) Tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act.  This item (33) is exempt from the provisions of Section 3-75.
(34) Beginning on January 1, 2024, tangible personal property purchased by an active duty member of the armed forces of the United States who presents valid military identification and purchases the property using a form of payment where the federal government is the payor. The member of the armed forces must complete, at the point of sale, a form prescribed by the Department of Revenue documenting that the transaction is eligible for the exemption under this paragraph.  Retailers must keep the form as documentation of the exemption in their records for a period of not less than 6 years. "Armed forces of the United States" means the United States Army, Navy, Air Force, Marine Corps, or Coast Guard. This paragraph is exempt from the provisions of Section 3-75.
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-384, eff. 1-1-24.)
(35 ILCS 110/3-5.5)
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 110/3-7)
Sec. 3-7. 
		Aggregate manufacturing exemption. 
		Through June 30, 2003,
the use of 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 110/3-8)
(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 3-75.
(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 110/3-10) (from Ch. 120, par. 439.33-10)
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 of tangible personal property transferred as an incident to the sale
of service, but, for the purpose of computing this tax, in no event shall
the selling price be less than the cost price of the property to the
serviceman.
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 applies to (i) 70% of the selling 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 before 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, 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 as an 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 Occupation 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 Occupation 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 on 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 bottle, 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.
If the property that is acquired from a serviceman is acquired outside
Illinois and used outside Illinois before being brought to Illinois for use
here and is taxable under this Act, the "selling price" on which the tax
is computed shall be reduced by an amount that represents a reasonable
allowance for depreciation for the period of prior out-of-state use.
(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
(35 ILCS 110/3-15) (from Ch. 120, par. 439.33-15)
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, 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 110/3-20) (from Ch. 120, par. 439.33-20)
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 110/3-25) (from Ch. 120, par. 439.33-25)
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 110/3-27)
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 110/3-30) (from Ch. 120, par. 439.33-30)
Sec. 3-30. Graphic arts production. For the 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 purposes 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 110/3-35) (from Ch. 120, par. 439.33-35)
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 110/3-40) (from Ch. 120, par. 439.33-40)
Sec. 3-40. 
		Collection. 
		The tax imposed by this Act
shall be collected at the time of purchase in
the manner prescribed by the Department from the user by a serviceman
maintaining a place of business in this State or by a serviceman authorized
by the Department under Section 7 of this Act, and the tax shall be
remitted to the Department as provided in Section 9
of this Act.
The tax imposed by this Act that is not paid to a
serviceman under this Section shall be paid to the Department
directly by any person using the property within this State
as provided in Section 10 of this Act.
If a serviceman collects Service Use Tax measured by receipts or
selling prices that are not subject to Service Use Tax, or if a
serviceman, in collecting Service Use Tax measured by receipts or selling
prices that are subject to tax under this Act, collects more from the
purchaser than the required amount of the Service Use Tax on 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 for any reason, the serviceman is liable to pay that amount to
the Department. This paragraph does not apply to an amount collected by
the serviceman as Service Use Tax on receipts or selling 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 110/3-45) (from Ch. 120, par. 439.33-45)
Sec. 3-45. Multistate exemption. To prevent actual or likely multistate
taxation, the tax imposed by this Act does not apply
to the use of tangible personal property in this State under the following
circumstances:
(a) The use, in this State, of property acquired outside this State
by a nonresident individual and brought into this State by the
individual for his or her own use while temporarily within this State or
while passing through this State.
(b) The use, in this State, of property that is
acquired outside
this State and that is moved into this State for use as rolling stock
moving in interstate commerce.
(c) The use, in this State, of property that is acquired outside
this State and caused to be brought into this State by a person who has
already paid a tax in another state in respect to the sale, purchase, or
use of that property, to the extent of the amount of the tax properly
due and paid in the other state.
(d) The temporary storage, in this State, of property that is
acquired outside this State and that after being brought into
this State and stored here temporarily, is used solely outside this
State or is physically attached to or incorporated into other property
that is used solely outside this State, or is altered by converting,
fabricating, manufacturing, printing, processing, or shaping, and, as
altered, is used solely outside this State.
(e) Beginning July 1, 1999, the use, in this State, of fuel acquired
outside this State and brought into this State in the fuel supply
tanks of locomotives engaged in freight hauling and passenger service for
interstate commerce. This subsection is exempt from the provisions of Section
3-75.
(f) Beginning on January 1, 2002 and through June 30, 2016, the use of 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 subsection (f).  The
permit issued under this subsection (f) 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.
(Source: P.A. 97-73, eff. 6-30-11.)
(35 ILCS 110/3-50) (from Ch. 120, par. 439.33-50)
Sec. 3-50. 
		Rolling stock exemption. 
		Except as provided in Section 3-51 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
the rolling stock transports, for hire, persons whose journeys or property
whose shipments originate or terminate outside Illinois.
(Source: P.A. 93-23, eff. 6-20-03.)
(35 ILCS 110/3-51)
Sec. 3-51. 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 (4a) of the definition of "sale of service" in Section 2 and subsection (b) of Section 3-45 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 (4a) of the definition of "sale of service" in Section 2 and subsection (b) of Section 3-45 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     (4a) 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 (i) paragraph (4a) of the definition of "sale of service" in Section 2 and (ii) subsection (b) of Section 3-45 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. 100-321, eff. 8-24-17.)
(35 ILCS 110/3-55) (from Ch. 120, par. 439.33-55)
Sec. 3-55. 
		S. 
		O. T. nontaxability.  If the serviceman would not be
taxable under the Service Occupation
Tax Act despite all elements of his sale of service occurring in
Illinois, then the tax imposed by this Act does not apply to the use in
this State of the property transferred as a necessary incident to the
sale of service.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 110/3-60) (from Ch. 120, par. 439.33-60)
Sec. 3-60. 
		Property acquired by nonresident. 
		The tax imposed by
this Act does not apply to the use, in this State,
of property that is acquired outside this State by a nonresident
individual who then brings the property to this State for use here and
who has used the property outside this State for at least 3 months
before bringing the property to this State.
Where a business that is not operated in Illinois, but is operated
in another state, is moved to Illinois or opens up an office,
plant, or other business facility in Illinois, that business shall not be
taxed on its use, in Illinois, of used property that the business
bought outside Illinois and used outside Illinois in the operation of
the business for at least 3 months before moving the used property to
Illinois for use in this State.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 110/3-65) (from Ch. 120, par. 439.33-65)
Sec. 3-65. 
		Liability because of amendatory Act. 
		Revisions in Section
3 (now Sections 3 through 3-65) 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 110/3-70)
Sec. 3-70. Manufacturer's Purchase Credit. For purchases of machinery and
equipment made on and after January 1, 1995 and through June 30, 2003, and on and after September 1, 2004 through August 30, 2014,
a
purchaser of manufacturing
machinery and equipment that qualifies for the exemption provided by Section
2 of this Act earns a credit in an amount equal to a fixed
percentage of
the tax which would have been incurred under this Act on those purchases.
For purchases of graphic arts machinery and equipment made on or after July
1, 1996 through June 30, 2003, and on and after September 1, 2004 through August 30, 2014, a purchase of graphic arts machinery and
equipment that qualifies for
the exemption provided by paragraph (5) of Section 3-5 of this Act earns a
credit in an amount equal to a fixed percentage of the tax that would have been
incurred under this Act on those purchases.
The credit earned for the purchase of manufacturing machinery and equipment
and graphic arts machinery and equipment shall be referred to
as the Manufacturer's Purchase Credit.
A graphic arts producer is a person engaged in graphic arts production as
defined in Section 3-30 of the Service Occupation Tax Act.  Beginning July 1,
1996, all references in this Section to manufacturers or manufacturing shall
also refer to graphic arts producers or graphic arts production.
The amount of credit shall be a percentage of the tax that would have been
incurred on the purchase of the manufacturing machinery and equipment or
graphic arts machinery and equipment
if the
exemptions provided by Section 2 or paragraph (5) of
Section 3-5 of
this Act had not
been applicable.
All purchases prior to October 1, 2003 of manufacturing machinery and
equipment and graphic arts
machinery and equipment that qualify for the exemptions provided by paragraph
(5) of Section 2
or paragraph (5) of Section 3-5 of this Act qualify for the credit without
regard to whether the serviceman elected, or could have elected, under
paragraph (7) of Section 2 of this Act to exclude the transaction from this
Act.  If the serviceman's billing to the service customer separately states a
selling price for the exempt manufacturing machinery or equipment or the exempt
graphic arts machinery and equipment, the credit shall be calculated, as
otherwise provided herein, based on that selling price.  If the serviceman's
billing does not separately state a selling price for the exempt manufacturing
machinery and equipment or the exempt graphic arts machinery and equipment, the
credit shall be calculated, as otherwise provided herein, based on 50% of the
entire billing.  If the serviceman contracts to design, develop, and produce
special order manufacturing machinery and equipment or special order graphic
arts machinery and equipment, and the billing does not separately state a
selling price for such special order machinery and
equipment, the credit shall be calculated, as otherwise provided herein, based
on 50% of the entire billing.  The provisions of this paragraph are effective
for purchases made on or after January 1, 1995.
The percentage shall be as follows:
(1) 15% for purchases made on or before June 30, 1995.
(2) 25% for purchases made after June 30, 1995, and     on or before June 30, 1996.
(3) 40% for purchases made after June 30, 1996, and     on or before June 30, 1997.
(4) 50% for purchases made on or after July 1, 1997.
(a) Manufacturer's Purchase Credit earned prior to July 1, 2003.  This subsection (a) applies to Manufacturer's Purchase Credit earned prior to July 1, 2003. A purchaser of production related tangible personal property desiring to use
the Manufacturer's Purchase Credit shall certify to the seller prior to
October 1, 2003 that the
purchaser is satisfying all or part of
the
liability under the Use Tax Act or the Service Use Tax Act that is due on the
purchase of the production related tangible personal property by use of a
Manufacturer's Purchase Credit. The Manufacturer's Purchase Credit
certification
must be dated and shall include the name and address of the purchaser, the
purchaser's registration number, if registered, the
credit being
applied, and a statement that the State Use Tax or Service Use Tax liability
is being satisfied with the manufacturer's or graphic arts producer's
accumulated purchase credit.
Certification may be incorporated into the manufacturer's or graphic arts
producer's
purchase order.
Manufacturer's Purchase Credit certification provided by the manufacturer
or graphic
arts producer
prior to October 1, 2003 may be used to satisfy the retailer's or
serviceman's liability under the
Retailers' Occupation Tax Act or
Service
Occupation Tax Act for the credit claimed, not to exceed
6.25% of the receipts subject to tax from a qualifying purchase, but only if
the retailer or serviceman reports the Manufacturer's Purchase Credit claimed
as required by the Department.  A Manufacturer's Purchase Credit reported on
any original or amended return
filed under
this Act after October 20, 2003 shall be disallowed.  The Manufacturer's
Purchase Credit earned by
purchase of exempt manufacturing machinery and equipment
or graphic arts machinery and equipment is a
non-transferable credit.  A manufacturer or graphic arts producer
that enters into a
contract involving the installation of tangible personal property into
real estate within a manufacturing or graphic arts production facility, prior
to October 1, 2003, may authorize a construction contractor
to utilize credit accumulated by the manufacturer or graphic arts producer
to
purchase the tangible personal property.  A manufacturer or graphic arts
producer
intending to use accumulated credit to purchase such tangible personal
property shall execute a written contract authorizing the contractor to utilize
a specified dollar amount of credit.  The contractor shall furnish, prior to
October 1, 2003, the supplier
with the manufacturer's or graphic arts producer's name, registration or
resale number, and a statement
that a specific amount of the Use Tax or Service Use Tax liability, not to
exceed 6.25% of the selling price, is being satisfied with the credit. The
manufacturer or graphic arts producer shall remain liable to timely report
all information required by
the annual Report of Manufacturer's Purchase Credit Used for credit utilized by
a
construction contractor.
No Manufacturer's Purchase Credit earned prior to July 1, 2003 may be used after October 1, 2003. The Manufacturer's Purchase Credit may be used to satisfy liability under the
Use Tax Act or the Service Use Tax Act due on the purchase of production
related tangible personal property (including purchases by a manufacturer, by
a graphic arts producer,
or a lessor who rents or leases the use of
the property to a manufacturer or graphic arts producer) that does not
otherwise qualify for the manufacturing machinery and equipment
exemption or the graphic arts machinery and equipment exemption.
"Production related tangible personal
property" means (i) all tangible personal property used or consumed by the
purchaser in a manufacturing facility in which a manufacturing process
described in Section 2-45 of the Retailers' Occupation Tax Act
takes place, including tangible personal property purchased for incorporation
into
real estate within a manufacturing facility and including, but not limited
to,
tangible personal property used or consumed in activities such as
pre-production
material handling, receiving, quality control, inventory control, storage,
staging, and packaging for shipping and transportation purposes; (ii)
all tangible personal property used or consumed by the purchaser in a graphic
arts facility in which graphic arts production as described in Section 2-30 of
the Retailers' Occupation Tax Act takes place, including tangible personal
property purchased for incorporation into real estate within a graphic arts
facility and including, but not limited to, all tangible personal property used
or consumed in activities such as graphic arts preliminary or pre-press
production,  pre-production material handling, receiving, quality control,
inventory control, storage, staging, sorting, labeling, mailing, tying,
wrapping, and packaging; and (iii) all tangible personal property used or
consumed by the purchaser
for research and
development. "Production related tangible personal property" does not include
(i) tangible personal property used, within or without a manufacturing or
graphic arts
facility, in sales, purchasing,
accounting, fiscal management, marketing,
personnel recruitment or selection, or landscaping or (ii) tangible personal
property required to be titled or registered with a department, agency, or unit
of federal, state, or local
government.  The Manufacturer's Purchase Credit may be used, prior to October
1, 2003, to satisfy the tax
arising either from the purchase of
machinery and equipment on or after January 1, 1995
for which the manufacturing machinery and equipment exemption
provided by Section 2  of this Act was
erroneously claimed, or the purchase of machinery and equipment on or after
July 1, 1996 for which the exemption provided by paragraph (5) of Section 3-5
of this Act was erroneously claimed, but not in
satisfaction of penalty, if any, and interest for failure to pay the tax
when due.  A
purchaser of production related tangible personal property who is required to
pay Illinois Use Tax or Service Use Tax on the purchase directly to the
Department may, prior to October 1, 2003, utilize the Manufacturer's
Purchase Credit in satisfaction of
the tax arising from that purchase, but not in
satisfaction of penalty and
interest.
A purchaser who uses the Manufacturer's Purchase Credit to purchase
property
which is later determined not to be production related tangible personal
property may be liable for tax, penalty, and interest on the purchase of that
property as of the date of purchase but shall be entitled to use the disallowed
Manufacturer's Purchase
Credit, so long as it has not expired and is used prior to October 1, 2003,
on qualifying purchases of production
related tangible personal property not previously subject to credit usage.
The Manufacturer's Purchase Credit earned by a manufacturer or graphic arts
producer
expires the last day of the second calendar year following the
calendar year in
which the credit arose.  No Manufacturer's Purchase Credit may be used after
September 30, 2003
regardless of
when that credit was earned.
A purchaser earning Manufacturer's Purchase Credit shall sign and file an
annual Report of Manufacturer's Purchase Credit Earned for each calendar year
no later
than the last day of the sixth month following the calendar year in which a
Manufacturer's Purchase Credit is earned.  A Report of Manufacturer's Purchase
Credit
Earned shall be filed on forms as prescribed or approved by the Department and
shall state, for each month of the calendar year: (i) the total purchase price
of all purchases of exempt manufacturing or graphic arts machinery on which
the credit was
earned; (ii) the total State Use Tax or Service Use Tax which would have been
due on those items; (iii) the percentage used to calculate the amount of credit
earned; (iv) the amount of credit earned; and (v) such other information as the
Department may reasonably require.  A purchaser earning Manufacturer's Purchase
Credit shall maintain records which identify, as to each purchase of
manufacturing or graphic arts machinery and equipment on which the
purchaser earned
Manufacturer's Purchase Credit, the vendor (including, if applicable, either
the vendor's registration number or Federal Employer Identification Number),
the purchase price, and the amount of Manufacturer's Purchase Credit earned on
each purchase.
A purchaser using Manufacturer's Purchase Credit shall sign and file an
annual Report of Manufacturer's Purchase Credit Used for each calendar year no
later than the last day of the sixth month following the calendar year in which
a Manufacturer's Purchase Credit is used. A Report of Manufacturer's Purchase
Credit Used shall be filed on forms as prescribed or approved by the Department
and
shall state, for each month of the calendar year:  (i) the total purchase price
of production related tangible personal property purchased from Illinois
suppliers; (ii) the total purchase price
of production related tangible personal property purchased from out-of-state
suppliers; (iii) the total amount of credit used during such month; and (iv)
such
other information as the Department may reasonably require.  A purchaser using
Manufacturer's Purchase Credit shall maintain records that identify, as to
each purchase of production related tangible personal property on which the
purchaser used Manufacturer's Purchase Credit, the vendor (including, if
applicable, either the vendor's registration number or Federal Employer
Identification Number), the purchase price, and the amount of Manufacturer's
Purchase Credit used on each purchase.
No annual report shall be filed before May 1, 1996 or after June 30,
2004.
A purchaser that fails to file an annual Report of Manufacturer's Purchase
Credit
Earned or an annual Report of Manufacturer's Purchase Credit Used by the last
day
of the sixth month following the end of the calendar year shall forfeit all
Manufacturer's Purchase Credit for that calendar year unless it establishes
that its failure to file was due to reasonable cause.
Manufacturer's Purchase Credit
reports may be amended to report and claim credit on qualifying purchases not
previously reported at any time before the credit would have expired, unless
both the Department and the purchaser have agreed to an extension of
the statute of limitations for the issuance of a notice of tax liability as
provided in Section 4 of the Retailers' Occupation Tax Act. If the time for
assessment or refund has been extended, then amended reports for a calendar
year may be filed at any time prior to the date to which the statute of
limitations for the calendar year or portion thereof has been extended.
No Manufacturer's Purchase Credit report filed with the Department
for periods
prior to January 1, 1995 shall be approved.
Manufacturer's Purchase Credit claimed on an amended report may be used,
prior to October 1, 2003, to
satisfy tax liability under the Use Tax Act or the Service Use Tax Act (i) on
qualifying purchases of production related tangible personal property made
after the date the amended report is filed or (ii) assessed by the Department
on qualifying purchases of production related tangible personal property made
in the case of manufacturers on or after January 1, 1995, or in the case
of graphic arts producers on or after July 1, 1996.
If the purchaser is not the manufacturer or a graphic arts producer, but
rents or
leases the use of the property to a manufacturer or a graphic arts
producer,
the purchaser may earn, report, and use
Manufacturer's
Purchase Credit in the same manner as a manufacturer or graphic arts
producer.
A purchaser shall not be entitled to any Manufacturer's Purchase
Credit for a purchase that is required to be reported and is not timely
reported as
provided in this Section.  A purchaser remains liable for (i) any
tax that was satisfied by use of a Manufacturer's Purchase Credit, as of the
date of purchase, if that use is not timely reported as required in this
Section and (ii) for any applicable penalties and interest for failing to pay
the tax when due.  No Manufacturer's Purchase Credit may be used after
September 30, 2003 to
satisfy any
tax liability imposed under this Act, including any audit liability.
(b)        Manufacturer's Purchase Credit earned on and after September 1, 2004.  This subsection (b) applies to Manufacturer's Purchase Credit earned on or after September 1, 2004. Manufacturer's Purchase Credit earned on or after September 1, 2004 may only be used to satisfy the Use Tax or Service Use Tax liability incurred on production related tangible personal property purchased on or after September 1, 2004.  A purchaser of production related tangible personal property desiring to use the Manufacturer's Purchase Credit shall certify to the seller that the purchaser is satisfying all or part of the liability under the Use Tax Act or the Service Use Tax Act that is due on the purchase of the production related tangible personal property by use of a Manufacturer's Purchase Credit. The Manufacturer's Purchase Credit certification must be dated and shall include the name and address of the purchaser, the purchaser's registration number, if registered, the credit being applied, and a statement that the State Use Tax or Service Use Tax liability is being satisfied with the manufacturer's or graphic arts producer's accumulated purchase credit. Certification may be incorporated into the manufacturer's or graphic arts producer's purchase order. Manufacturer's Purchase Credit certification provided by the manufacturer or graphic arts producer may be used to satisfy the retailer's or serviceman's liability under the Retailers' Occupation Tax Act or Service Occupation Tax Act for the credit claimed, not to exceed 6.25% of the receipts subject to tax from a qualifying purchase, but only if the retailer or serviceman reports the Manufacturer's Purchase Credit claimed as required by the Department. The Manufacturer's Purchase Credit earned by purchase of exempt manufacturing machinery and equipment or graphic arts machinery and equipment is a non-transferable credit. A manufacturer or graphic arts producer that enters into a contract involving the installation of tangible personal property into real estate within a manufacturing or graphic arts production facility may, on or after September 1, 2004, authorize a construction contractor to utilize credit accumulated by the manufacturer or graphic arts producer to purchase the tangible personal property. A manufacturer or graphic arts producer intending to use accumulated credit to purchase such tangible personal property shall execute a written contract authorizing the contractor to utilize a specified dollar amount of credit. The contractor shall furnish the supplier with the manufacturer's or graphic arts producer's name, registration or resale number, and a statement that a specific amount of the Use Tax or Service Use Tax liability, not to exceed 6.25% of the selling price, is being satisfied with the credit. The manufacturer or graphic arts producer shall remain liable to timely report all information required by the annual Report of Manufacturer's Purchase Credit Used for credit utilized by a construction contractor.
The Manufacturer's Purchase Credit may be used to satisfy liability under the Use Tax Act or the Service Use Tax Act due on the purchase, made on or after September 1, 2004, of production related tangible personal property (including purchases by a manufacturer, by a graphic arts producer, or a lessor who rents or leases the use of the property to a manufacturer or graphic arts producer) that does not otherwise qualify for the manufacturing machinery and equipment exemption or the graphic arts machinery and equipment exemption. "Production related tangible personal property" means (i) all tangible personal property used or consumed by the purchaser in a manufacturing facility in which a manufacturing process described in Section 2-45 of the Retailers' Occupation Tax Act takes place, including tangible personal property purchased for incorporation into real estate within a manufacturing facility and including, but not limited to, tangible personal property used or consumed in activities such as pre-production material handling, receiving, quality control, inventory control, storage, staging, and packaging for shipping and transportation purposes; (ii) all tangible personal property used or consumed by the purchaser in a graphic arts facility in which graphic arts production as described in Section 2-30 of the Retailers' Occupation Tax Act takes place, including tangible personal property purchased for incorporation into real estate within a graphic arts facility and including, but not limited to, all tangible personal property used or consumed in activities such as graphic arts preliminary or pre-press production, pre-production material handling, receiving, quality control, inventory control, storage, staging, sorting, labeling, mailing, tying, wrapping, and packaging; and (iii) all tangible personal property used or consumed by the purchaser for research and development. "Production related tangible personal property" does not include (i) tangible personal property used, within or without a manufacturing or graphic arts facility, in sales, purchasing, accounting, fiscal management, marketing, personnel recruitment or selection, or landscaping or (ii) tangible personal property required to be titled or registered with a department, agency, or unit of federal, state, or local government. The Manufacturer's Purchase Credit may be used to satisfy the tax arising either from the purchase of machinery and equipment on or after September 1, 2004 for which the manufacturing machinery and equipment exemption provided by Section 2 of this Act was erroneously claimed, or the purchase of machinery and equipment on or after September 1, 2004 for which the exemption provided by paragraph (5) of Section 3-5 of this Act was erroneously claimed, but not in satisfaction of penalty, if any, and interest for failure to pay the tax when due. A purchaser of production related tangible personal property that is purchased on or after September 1, 2004 who is required to pay Illinois Use Tax or Service Use Tax on the purchase directly to the Department may utilize the Manufacturer's Purchase Credit in satisfaction of the tax arising from that purchase, but not in satisfaction of penalty and interest. A purchaser who uses the Manufacturer's Purchase Credit to purchase property on and after September 1, 2004 which is later determined not to be production related tangible personal property may be liable for tax, penalty, and interest on the purchase of that property as of the date of purchase but shall be entitled to use the disallowed Manufacturer's Purchase Credit, so long as it has not expired, on qualifying purchases of production related tangible personal property not previously subject to credit usage. The Manufacturer's Purchase Credit earned by a manufacturer or graphic arts producer expires the last day of the second calendar year following the calendar year in which the credit arose.
A purchaser earning Manufacturer's Purchase Credit shall sign and file an annual Report of Manufacturer's Purchase Credit Earned for each calendar year no later than the last day of the sixth month following the calendar year in which a Manufacturer's Purchase Credit is earned. A Report of Manufacturer's Purchase Credit Earned shall be filed on forms as prescribed or approved by the Department and shall state, for each month of the calendar year: (i) the total purchase price of all purchases of exempt manufacturing or graphic arts machinery on which the credit was earned; (ii) the total State Use Tax or Service Use Tax which would have been due on those items; (iii) the percentage used to calculate the amount of credit earned; (iv) the amount of credit earned; and (v) such other information as the Department may reasonably require. A purchaser earning Manufacturer's Purchase Credit shall maintain records which identify, as to each purchase of manufacturing or graphic arts machinery and equipment on which the purchaser earned Manufacturer's Purchase Credit, the vendor (including, if applicable, either the vendor's registration number or Federal Employer Identification Number), the purchase price, and the amount of Manufacturer's Purchase Credit earned on each purchase.
A purchaser using Manufacturer's Purchase Credit shall sign and file an annual Report of Manufacturer's Purchase Credit Used for each calendar year no later than the last day of the sixth month following the calendar year in which a Manufacturer's Purchase Credit is used. A Report of Manufacturer's Purchase Credit Used shall be filed on forms as prescribed or approved by the Department and shall state, for each month of the calendar year: (i) the total purchase price of production related tangible personal property purchased from Illinois suppliers; (ii) the total purchase price of production related tangible personal property purchased from out-of-state suppliers; (iii) the total amount of credit used during such month; and (iv) such other information as the Department may reasonably require. A purchaser using Manufacturer's Purchase Credit shall maintain records that identify, as to each purchase of production related tangible personal property on which the purchaser used Manufacturer's Purchase Credit, the vendor (including, if applicable, either the vendor's registration number or Federal Employer Identification Number), the purchase price, and the amount of Manufacturer's Purchase Credit used on each purchase.
A purchaser that fails to file an annual Report of Manufacturer's Purchase Credit Earned or an annual Report of Manufacturer's Purchase Credit Used by the last day of the sixth month following the end of the calendar year shall forfeit all Manufacturer's Purchase Credit for that calendar year unless it establishes that its failure to file was due to reasonable cause. Manufacturer's Purchase Credit reports may be amended to report and claim credit on qualifying purchases not previously reported at any time before the credit would have expired, unless both the Department and the purchaser have agreed to an extension of the statute of limitations for the issuance of a notice of tax liability as provided in Section 4 of the Retailers' Occupation Tax Act. If the time for assessment or refund has been extended, then amended reports for a calendar year may be filed at any time prior to the date to which the statute of limitations for the calendar year or portion thereof has been extended.  Manufacturer's Purchase Credit claimed on an amended report may be used to satisfy tax liability under the Use Tax Act or the Service Use Tax Act (i) on qualifying purchases of production related tangible personal property made after the date the amended report is filed or (ii) assessed by the Department on qualifying production related tangible personal property purchased on or after September 1, 2004.
If the purchaser is not the manufacturer or a graphic arts producer, but rents or leases the use of the property to a manufacturer or a graphic arts producer, the purchaser may earn, report, and use Manufacturer's Purchase Credit in the same manner as a manufacturer or graphic arts producer.

A purchaser shall not be entitled to any Manufacturer's Purchase Credit for a purchase that is required to be reported and is not timely reported as provided in this Section. A purchaser remains liable for (i) any tax that was satisfied by use of a Manufacturer's Purchase Credit, as of the date of purchase, if that use is not timely reported as required in this Section and (ii) for any applicable penalties and interest for failing to pay the tax when due.
(Source: P.A. 96-116, eff. 7-31-09.)
(35 ILCS 110/3-72)
Sec. 3-72. Sustainable Aviation Fuel Purchase Credit.
(a) From July 1, 2023 through December 31, 2032, sustainable aviation fuel sold to or used by an air common carrier, certified by the carrier to be used in Illinois, earns a credit in the amount of $1.50 per gallon of sustainable aviation fuel purchased. The credit earned shall be referred to as the Sustainable Aviation Fuel Purchase Credit.
Only that portion of each gallon of aviation fuel that consists of sustainable aviation fuel, as defined in this Section, is eligible to earn the credit.
The credit is earned at the time sustainable aviation fuel is purchased for use in Illinois.  The amount of credit that is earned is based on the number of whole gallons of sustainable aviation fuel purchased for use in Illinois. Partial gallons will not earn a credit. Credits may be used at the same time as they are earned.
For a sale or use of aviation fuel to qualify to earn the Sustainable Aviation Fuel Purchase Credit, taxpayers must retain in their books and records a certification from the producer of the aviation fuel that the aviation fuel sold or used and for which a sustainable aviation fuel purchase credit was earned meets the definition of sustainable aviation fuel under this Section. The documentation must include detail sufficient for the Department to determine the number of gallons of sustainable aviation fuel sold or used.
A Sustainable Aviation Fuel Purchase Credit earned by an air common carrier expires on December 31, 2032.  The Sustainable Aviation Fuel Purchase Credit is a non-transferable and non-refundable credit. Taxpayers shall account for the earning and usage of Sustainable Aviation Fuel Purchase Credits on each monthly return filed with the Department, as deemed necessary by the Department.
The purchaser of sustainable aviation fuel shall certify to the seller of the aviation fuel that the purchaser is satisfying all or part of its liability for the 6.25% tax under the Use Tax Act or the Service Use Tax Act that is due on the purchase of aviation fuel by use of the sustainable aviation fuel purchase credit.
The Sustainable Aviation Fuel Purchase Credit certification must be dated and shall include the name and address of the purchaser, the purchaser's registration number, if registered, the credit being applied, and a statement that the State Use Tax or Service Use Tax liability is being satisfied with the air common carrier's sustainable aviation fuel purchase credit.
An air common carrier-purchaser of aviation fuel may utilize the Sustainable Aviation Fuel Purchase Credit in satisfaction of the 6.25% tax arising from the purchase of aviation fuel, but not in satisfaction of penalty or interest.
Until January 1, 2033, on an annual basis running from January through December each year, no credit may be earned by an air common carrier for soybean oil-derived sustainable aviation fuel once air common carriers in this State have collectively purchased sustainable aviation fuel containing 10,000,000 gallons of soybean oil feedstock. If, in any year, air common carriers collectively purchase sustainable aviation fuel containing more than 10,000,000 gallons of soybean oil feedstock for use in this State, then, in the month in which taxpayer reporting shows that the credit earned from these purchases exceeds the cap, the Department shall first determine the remaining number of gallons of soybean oil feedstock available to earn the credit for that year by subtracting from 10,000,000 the number of gallons of soybean oil feedstock collectively purchased that year based on the prior month's taxpayer reporting.  The Department shall then allocate the credit from these remaining gallons of soybean oil feedstock available to earn the credit for that year by allowing credit to each air common carrier in the same proportion as the number of gallons of soybean oil feedstock reported as having been purchased by each air common carrier during the month in which the cap is exceeded is to all of the gallons of soybean oil feedstock reported as having been purchased during that month. The earning of any credit in excess of this shall be disallowed for the remainder of the year.  For any credit that was used, the earning of which was disallowed in the process described in this paragraph, any resulting tax shall be due on or before April 20th of the year following the year in which the 10,000,000 gallon cap on soybean oil feedstock was exceeded and shall be reported and paid on the aviation fuel tax return. Any credit that is earned for the purchase of soybean oil feedstock but not timely reported in a year in which the cap is exceeded is disallowed.
A Sustainable Aviation Fuel Purchase Credit certification provided by the air common carrier may be used to satisfy the retailer's or serviceman's 6.25% tax liability on aviation fuel under the Retailers' Occupation Tax Act or Service Occupation Tax Act for the credit claimed.
(b) As used in this Section, "sustainable aviation fuel" means liquid fuel that meets the criteria set forth in subsections (d) and (e) of Section 40B of the federal Internal Revenue Code of 1986 or:
(1) consists of synthesized hydrocarbons and meets     the requirements of:
(A) the American Society for Testing and         Materials International Standard D7566; or
(B) the Fischer-Tropsch provisions of American         Society for Testing and Materials International Standard D1655, Annex A1;
(2) prior to June 1, 2028, is derived from biomass     resources, waste streams, renewable energy sources, or gaseous carbon oxides, and beginning on June 1, 2028 is derived from domestic biomass resources;
(3) is not derived from any palm derivatives; and
(4) the fuel production pathway for the sustainable     aviation fuel achieves at least a 50% lifecycle greenhouse gas emissions reduction in comparison with petroleum-based jet fuel, as determined by a test that shows:
(A) that the fuel production pathway achieves at         least a 50% reduction of the aggregate attributional core lifecycle emissions and the positive induced land use change values under the lifecycle methodology for sustainable aviation fuels adopted by the International Civil Aviation Organization with the agreement of the United States; or
(B) that the fuel production pathway achieves at         least a 50% reduction of the aggregate attributional core lifecycle greenhouse gas emissions values utilizing the most recent version of Argonne National Laboratory's GREET model, inclusive of agricultural practices and carbon capture and sequestration.
(Source: P.A. 102-1125, eff. 2-3-23; 103-9, eff. 6-7-23.)
(35 ILCS 110/3-75)
Sec. 3-75. 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 110/3a) (from Ch. 120, par. 439.33a)
Sec. 3a. 
		
		The tax imposed by this Act may be stated as a distinct item
separate and apart from the selling price of the service, and shall be so
stated when requested by the buyer.
(Source: Laws 1961, p. 1757.)
(35 ILCS 110/3c) (from Ch. 120, par. 439.33c)
Sec. 3c. 
		
		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; 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
with 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 110/3d) (from Ch. 120, par. 439.33d)
Sec. 3d. 
		
		(1) Except as provided in paragraph (2) of this Section, the
selling price of each item of tangible personal property transferred
incident to a sale of service may be stated as a distinct item by the
serviceman to the service customer and the tax imposed by this Act shall
when collected be stated as a distinct item separate and apart from the
selling price of the tangible personal property.  If the selling price of
each item of tangible personal property transferred incidental to a sale of
service is not stated as a separate item on the serviceman's billing to the
service customer, then the tax imposed by this Act shall be based on 50% of
the serviceman's entire billing to the service customer.
(2) When 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.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 110/4) (from Ch. 120, par. 439.34)
Sec. 4. 
		
		Evidence that property was sold by any person for delivery to a
person residing or engaged in business in this State shall be prima facie
evidence that such property was sold for use in this State.
(Source: Laws 1961, p. 1757.)
(35 ILCS 110/5) (from Ch. 120, par. 439.35)
Sec. 5. 
		
		Every serviceman maintaining a place of business in this State
and making sales of service involving the incidental transfer of property
for use in this State (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 purchaser, give to the purchaser (if
demanded by the purchaser) a receipt for the tax in the
manner and form prescribed by the Department. The receipt
shall be sufficient to relieve the purchaser from further liability for the
tax to which the receipt may refer. Each serviceman
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 110/6) (from Ch. 120, par. 439.36)
Sec. 6. 
		
		A serviceman maintaining a place of business in this State, if
required to register under the Retailers' Occupation Tax Act, or under
the Use Tax Act, or under the Service Occupation 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, or under the Use Tax Act, or under
the Service Occupation Tax Act. Every serviceman maintaining a place of
business in this State, if not required to register under the Retailers'
Occupation Tax Act, or under the Use Tax Act, or under the Service
Occupation Tax Act, shall 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 serviceman in this State. If the
applicant will act as a 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-Certificates relate.
Where a 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. No Certificate of Registration
shall be issued to any person who is in default to the State of Illinois
for moneys due hereunder.
(Source: Laws 1961, p. 1757.)
(35 ILCS 110/7) (from Ch. 120, par. 439.37)
Sec. 7. 
		
		The Department may, in its discretion, upon application, authorize
the collection of the tax herein imposed by any 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 serviceman shall be issued, without charge, a permit to
collect such tax. When so authorized, it shall be the duty of such
serviceman to collect the tax upon all tangible personal property sold to
his knowledge for use within this State, in the same manner and subject to
the same requirements, including the furnishing of a receipt to the
purchaser (if demanded by the purchaser), as a serviceman maintaining a
place of business within this State. The receipt given to the purchaser
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 herein.
(Source: Laws 1961, p. 1757.)
(35 ILCS 110/7a) (from Ch. 120, par. 439.37a)
Sec. 7a. 
		
		It is unlawful for any serviceman to advertise or hold out or
state to the public or to any service customer, purchaser, consumer or
user, directly or indirectly, that the tax imposed by this Act or any part
thereof will be assumed or absolved by the serviceman or that it will not
be added to the selling price of the property transferred as an incident to
a sale of service, or if added that it or any part thereof will be refunded
other than when the serviceman refunds the selling price and tax because of
the merchandise being returned to the serviceman or other than when the
serviceman credits or refunds the tax to the service customer to support a
claim filed with the Department under the Service Occupation
Tax Act or under this Act.  Any person violating any of the provisions of
this Section within the State shall be guilty of a Class A misdemeanor.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 110/8) (from Ch. 120, par. 439.38)
Sec. 8. 
		
		Any
serviceman required to collect the tax imposed by this Act
shall be liable to the Department for the tax, whether or not the tax has been
collected by the serviceman, except when the serviceman is relieved of the duty
of remitting the tax to the Department by virtue of having paid a tax imposed
by the Service Occupation Tax Act upon his or her sale of service involving the
incidental transfer by him or her of the same property.  To the extent that a
serviceman required to collect the tax imposed by this Act has actually
collected that tax, the tax is held in trust for the benefit of the
Department.
(Source: P.A. 91-203, eff. 7-20-99.)
(35 ILCS 110/9) (from Ch. 120, par. 439.39)
Sec. 9. Each serviceman required or authorized to collect the tax
herein imposed shall pay to the Department the amount of such tax
(except as otherwise provided) at the time when he is required to file
his return for the period during which such tax was collected, 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. A serviceman need not remit
that part of any tax collected by him to the extent that he is required to
pay and does pay the tax imposed by the Service Occupation Tax Act with
respect to his sale of service involving the incidental transfer by him of
the same property.
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. 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 Occupation 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 imposed by this Act on aviation fuel transferred as an incident of a sale of service in this State during the preceding calendar month shall, instead of reporting and paying tax on aviation fuel 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 collecting tax on aviation fuel 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.
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.
If the serviceman is otherwise required to file a monthly return and
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 is otherwise required to file a monthly or quarterly
return and 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.
Where a serviceman collects the tax with respect to the selling price of
property which he sells and the purchaser thereafter returns such
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 Use Tax, Service Occupation 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.
Any serviceman filing a return hereunder shall also include the total
tax upon the selling price of tangible personal property purchased for use
by him as an incident to a sale of service, and such serviceman shall remit
the amount of such tax to the Department when filing such return.
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 Service Occupation Tax Act, to furnish all the return
information required by both Acts on the one form.
Where the serviceman has more than one business registered with the
Department under separate registration hereunder, such serviceman shall
not file each return that is due as a single return covering all such
registered businesses, but shall file separate returns for each such
registered business.
Beginning January 1, 1990, each month the Department shall pay into
the State and Local Tax Reform Fund, a special fund in the State Treasury,
the net 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 State and Local Sales Tax Reform Fund 20% of the net revenue realized
for the preceding month from the 6.25% general rate on transfers of
tangible personal property, other than (i) tangible personal property which is
purchased outside Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government and (ii) 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
State and Local Sales Tax Reform Fund 100% 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 Occupation 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 Occupation 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, this Act, the Service Occupation Tax 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 Bond 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 Clean Air Act Permit 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, 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 State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project 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 State and Local Sales Tax Reform 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 State and Local Sales Tax Reform 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 State and Local Sales Tax Reform 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 State and Local Sales Tax Reform 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% thereof 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.
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.
(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)
(35 ILCS 110/10) (from Ch. 120, par. 439.40)
Sec. 10. 
		
		Where property is acquired as an incident to the purchase of a
service from a serviceman for use in this State by a purchaser who did not
pay the tax herein imposed to the serviceman, and who does not file returns
with the Department as a serviceman under Section 9 of this Act, such
purchaser (by the last day of the month following the calendar month in
which such purchaser makes any payment upon the selling price of such
property) shall, except as hereinafter provided in this Section, file a
return with the Department and pay the tax upon that portion of the selling
price so paid by the purchaser during the preceding calendar month. Such
return shall be filed on a form prescribed by the Department and shall
contain such information as the Department may reasonably require.
When a purchaser pays a tax herein imposed directly to the Department,
the Department (upon request therefor from such purchaser) shall issue an
appropriate receipt to such purchaser showing that he has paid such tax to
the Department. Such receipt shall be sufficient to relieve the purchaser
from further liability from the tax to which such receipt may refer.
A user who is liable to pay Service Use Tax directly to the Department
only occasionally and not on a frequently recurring basis, and who is not
required to file returns within the Department as a serviceman under
Section 9 of this Act, or as a serviceman under the "Service
Occupation Tax Act", or as a retailer or user under the "Use Tax Act",
or as a retailer under the "Retailers' Occupation Tax Act", need not
register with the Department. However, if such a user has a frequently
recurring direct Service Use Tax liability to pay to the Department, such
user shall be required to register with the Department on forms prescribed
by the Department and to obtain and display a certificate of registration
from the Department. In that event, all of the provisions of Section 9 of
this Act concerning the filing of regular monthly, quarterly or annual tax
returns and all of the provisions of Section 2a of the "Retailers'
Occupation Tax Act" concerning the requirements for registrants to post
bond or other security with the Department, as the provisions of such
sections now exist or may hereafter be amended, shall apply to such users
to the same extent as if such provisions were included herein.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 110/10a) (from Ch. 120, par. 439.40a)
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 110/11) (from Ch. 120, par. 439.41)
Sec. 11. 
Every serviceman required or authorized to collect taxes hereunder
and every user who is subject to the tax imposed by this Act 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 concerning any matters covered
herein and not otherwise delegated to the Illinois Independent Tax Tribunal and may examine any relevant books, papers, records, documents or
memoranda of any serviceman or any taxable purchaser for use hereunder, 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 110/12) (from Ch. 120, par. 439.42)
Sec. 12. Applicability of Retailers' Occupation Tax Act and Uniform
Penalty and Interest Act.  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
money collected under this Act), 4 (except that the time limitation
provisions shall run 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 and except that in the case of a
failure to file a return required by this Act, no notice of tax liability shall
be issued on and after July 1 and January 1 covering tax due with that return
during any month or period more than 6 years before that July 1 or January
1, respectively), 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 110/13) (from Ch. 120, par. 439.43)
Sec. 13. 
		
		Any non-resident of this State who accepts the privilege extended
by the laws of this State to non-residents of acting as a serviceman
maintaining a place of business in this State within the meaning of Section
2 of this Act, and any resident of this State who incurs tax
accountability under this Act as a serviceman and who subsequently removes
from this State or conceals his whereabouts, and any person (resident or
non-resident) who incurs tax liability under this Act as a user 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: Laws 1961, p. 1757.)
(35 ILCS 110/14) (from Ch. 120, par. 439.44)
Sec. 14. 
		
		Whenever any serviceman not maintaining a place of business in
this State, to whom a permit to collect the tax hereby imposed has been
issued pursuant to Section 7 hereof, fails to comply with any of the
provisions hereof or any orders, Rules or Regulations of the Department
prescribed and adopted hereunder, or when the Department considers the
security furnished by such serviceman to be inadequate or considers that
the tax can be collected more effectively from persons using such property
in this State, the Department may, upon notice and hearing as herein
provided, by order revoke the permit issued to such serviceman. No order
authorized by this Section shall be made until the serviceman is given an
opportunity to be heard and to show cause why such order shall not be made,
and he shall be given at least 7 days' notice of the time, place and
purpose of such hearing. The Department shall have the power in its
discretion to issue a new permit pursuant to Section 7 hereof after such
revocation.
(Source: Laws 1961, p. 1757.)
(35 ILCS 110/15) (from Ch. 120, par. 439.45)
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 and 5 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
willfully 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 and 5
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 Use Tax
measured by receipts or selling prices which such serviceman knows are not
subject to Service Use Tax, or any serviceman who knowingly over-collects
or attempts to over-collect Service Use Tax 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 offense. This paragraph does not apply to an amount
collected by the serviceman as Service Use Tax 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 taxpayer or agent of a taxpayer who with the intent to defraud
purports to make a payment due to the Department 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 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, the
Use Tax Act or the Service Occupation Tax Act.
(Source: P.A. 97-1150, eff. 1-25-13; 98-352, eff. 1-1-14.)
(35 ILCS 110/15.5) (from Ch. 120, par. 439.45a)
Sec. 15.5. 
		(Repealed).
(Source: Repealed by P.A. 87-205.)
(35 ILCS 110/16) (from Ch. 120, par. 439.46)
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. 1757.)
(35 ILCS 110/17) (from Ch. 120, par. 439.47)
Sec. 17. 
If it shall appear that an amount of tax or penalty or interest has
been paid in error hereunder to the Department by a purchaser, as distinguished
from the serviceman, whether such amount be paid through a mistake of fact
or an error of law, such purchaser 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 serviceman
who is required or authorized to collect and remit the Service Use Tax,
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,
provided that no credit shall be allowed or refund made for any amount paid
by any such serviceman 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 serviceman 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 vendor, nor to be relieved of such
burden in any other manner whatsoever. If it shall appear that an amount of
tax has been paid in error hereunder by the purchaser to a serviceman, who
retained such tax as reimbursement for his tax liability on the same sale
of service under the Service Occupation Tax Act, and who paid such tax
as required by the Service Occupation Tax Act, whether such amount be
paid through a mistake of fact or an error of law, the procedure for
recovering such tax shall be that prescribed in Sections 17, 18, 19 and 20
of the Service Occupation Tax Act.
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 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 or her 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 110/18) (from Ch. 120, par. 439.48)
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 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 a person 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 claimant who is a person 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 or incompetent claimant.
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 110/19) (from Ch. 120, par. 439.49)
Sec. 19. 
		(Repealed).
(Source: P.A. 79-1365.  Repealed by P.A. 90-562, eff. 12-16-97.)
(35 ILCS 110/20) (from Ch. 120, par. 439.50)
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
Occupation 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
Occupation 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, the Service Occupation 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 Occupation 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 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 110/20a) (from Ch. 120, par. 439.50a)
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 110/21) (from Ch. 120, par. 439.51)
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
users or some kind of use 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. 1757.)