Section 130.120 Nontaxable Transactions

TITLE 86: REVENUE

CHAPTER I: DEPARTMENT OF REVENUE

PART 130 RETAILERS' OCCUPATION TAX

SECTION 130.120 NONTAXABLE TRANSACTIONS

Section 130.120

Nontaxable Transactions

The tax does not apply

to gross receipts from sales

, which, on and after January 1, 2025,

includes leases

:

a)         of

intangible personal property, such as shares of stocks, bonds, evidences of

interest in property, corporate, or other franchises, and evidences of debt.

These types of sales are outside the scope of the Retailers' Occupation Tax

Act;

b)         of real property, such as lands and

buildings that are permanently attached to the land.  These types of sales are

outside the scope of the Retailers' Occupation Tax Act;

c)         of tangible personal property for

purposes of resale in any form as tangible personal property, provided that the

purchaser, except in the case of an out-of-State purchaser who will always

resell and deliver the property to customers outside Illinois, has an active

registration number or active resale number from the Department and gives the

number to the vendor in connection with certifying to the vendor that the sale

to the purchaser is nontaxable on the ground of being a sale for resale.  See

Subparts B and N of this Part.  This exemption existed prior to the enactment

of Section 2-70 and will not sunset;

d)         of personal services, where rendered

as such.  See various rules relating to particular service occupations

in Subpart S of this Part.  However

, for

information concerning the tax on persons engaged in the business of making

sales of service, see

Part 140, Service Occupation Tax

(86 Ill. Adm. Code 140).  These types of sales are

outside the scope of the Retailers' Occupation Tax Act;

e)         that are within the protection of the

Commerce Clause of the Constitution of the United States.  See Subpart F of

this Part.  These types of sales are outside the scope of the Retailers'

Occupation Tax Act;

f)         that are isolated or occasional

140, Service Occupation Tax

(86 Ill. Adm. Code 140).  These types of sales are

outside the scope of the Retailers' Occupation Tax Act;

e)         that are within the protection of the

Commerce Clause of the Constitution of the United States.  See Subpart F of

this Part.  These types of sales are outside the scope of the Retailers'

Occupation Tax Act;

f)         that are isolated or occasional.

See 35 ILCS 120/1 and

Section 130.110 of this Subpart.  This exemption existed prior to the

enactment of Section 2-70 and will not sunset;

g)         of newspapers and magazines.

See

35 ILCS 120/1 and

Section 130.2105 of this

Part.  This exemption existed prior to the enactment of Section 2-70 and will

not sunset;

h)         of

personal

property sold to a corporation, society, association, foundation, or

institution organized and operated exclusively for charitable, religious, or

educational purposes, or to a not-for-profit corporation, society, association,

foundation, institution, or organization that has no compensated officers or

employees and that is organized and operated primarily for the recreation of

persons 55 years of age or older.  A limited liability company may qualify for

the exemption under this

subsection

only if the limited liability

company is organized and operated exclusively for educational purposes.

[35 ILCS 120/2-5(11)]  See also Section 130.2005 of this Part.  This exemption

existed prior to the enactment of Section 2-70 and will not sunset;

i)

of

personal property sold

to a governmental body

.  [35 ILCS 120/2-5(11)]  See

also

Section 130.2080 of this Part.

This exemption existed prior to the enactment of Section 2-70 and will not

sunset;

j)          of

tangible personal

property as low sulfur dioxide emission coal fueled devices

.

[35 ILCS 120/1a-1]  See also Section

130.355 of this Part

nt of Section 2-70 and will not sunset;

i)

of

personal property sold

to a governmental body

.  [35 ILCS 120/2-5(11)]  See

also

Section 130.2080 of this Part.

This exemption existed prior to the enactment of Section 2-70 and will not

sunset;

j)          of

tangible personal

property as low sulfur dioxide emission coal fueled devices

.

[35 ILCS 120/1a-1]  See also Section

130.355 of this Part.

This exemption

existed prior to the enactment of Section 2-70 and will not sunset;

k)         of

fuel consumed or used in the

operation of ships, barges, or vessels that are used primarily in or for the

transportation of property or the conveyance of persons for hire on rivers

bordering on this State if the fuel is delivered by the seller to the

purchaser's barge, ship, or vessel while it is afloat upon that bordering river.

[35 ILCS 120/2-5(24)]  See also Section 130.315 of this Part.  This

exemption existed prior to the enactment of Section 2-70 and will not sunset;

l)

of tangible personal

property to interstate carriers for hire for use as rolling stock moving in

interstate commerce.

[35 ILCS 120/2-5(13)]  See also Section 130.340 of

this Part

.  This exemption existed prior to

the enactment of Section 2-70 and will not sunset;

m)        of

a motor vehicle sold in this State to a nonresident even though the motor

vehicle is delivered to the nonresident in this State, if the motor vehicle is

not to be titled in this State, and if a drive-away permit is issued to the

motor vehicle as provided in Section 3-603 of the Illinois Vehicle Code

[625 ILCS 5/3-603]

or if the nonresident purchaser has vehicle registration

plates to transfer to the motor vehicle upon returning to

their

home

state.

[35 ILCS 120/2-5(25)]

The exemption does not apply if the state

in which the motor vehicle will be titled does not allow a reciprocal exemption

for a motor vehicle sold and delivered in that state to an Illinois resident

but titled in Illinois.

[35 ILCS 120/2-5(25-5)]  See also Section 130.605

of this Part

gistration

plates to transfer to the motor vehicle upon returning to

their

home

state.

[35 ILCS 120/2-5(25)]

The exemption does not apply if the state

in which the motor vehicle will be titled does not allow a reciprocal exemption

for a motor vehicle sold and delivered in that state to an Illinois resident

but titled in Illinois.

[35 ILCS 120/2-5(25-5)]  See also Section 130.605

of this Part.  This exemption existed prior to the enactment of Section 2-70

and will not sunset;

n)         until December 31, 2001, of

merchandise in bulk when sold from a vending machine for 1¢; on and after

January 1, 2002, of merchandise in bulk when sold from a vending machine for

50¢ or less.  See 35 ILCS 120/1 and Section 130.2135 of this Part.  These types

of sales are outside the scope of the Retailers' Occupation Tax Act;

o)         of food and beverages by

a

person who is the recipient of a grant or contract under Title VII of the Older

Americans Act of 1965

(42 U.S.C. 3021)

and serves meals to participants

in the federal Nutrition Program for the Elderly in return for contributions

established in amount by the individual participant pursuant to a schedule of

suggested fees as provided for in the federal Act

.  [35 ILCS 120/1]This exemption existed prior to the enactment of

Section 2-70 and will not sunset;

p)         of

farm chemicals.

[35 ILCS

120/2-5(1)]  See also Section 130.1955 of this Part.  This exemption existed

prior to the enactment of Section 2-70 and will not sunset;

q)         of

machinery and equipment

used primarily in the process of manufacturing and assembling.

[35 ILCS 120/2-5(14)]  See Section 130.330 of

this Part for machinery and equipment that qualifies for the exemption

t;

p)         of

farm chemicals.

[35 ILCS

120/2-5(1)]  See also Section 130.1955 of this Part.  This exemption existed

prior to the enactment of Section 2-70 and will not sunset;

q)         of

machinery and equipment

used primarily in the process of manufacturing and assembling.

[35 ILCS 120/2-5(14)]  See Section 130.330 of

this Part for machinery and equipment that qualifies for the exemption.  This

exemption existed prior to the enactment of Section 2-70 and will not sunset;

r)          of services included in gross

receipts that are designated as

mandatory service charges

by vendors of

meals

to the extent that the proceeds of the service charge are in

fact turned over to the employees

who

would normally have received tips had the service charge policy not been

introduced.

[35 ILCS 120/2-5(15)]  See also Section 130.2145 of this

Part.

Service charges that are used to

fund or pay wages, labor costs, employee benefits, or employer costs of doing

business are taxable gross receipts.  This exemption existed prior to the

enactment of Section 2-70 and will not sunset;

s)         of

tangible personal property sold to a purchaser if the

purchaser is exempt from use tax by operation of federal law.

This

subsection

(s)

is exempt from the

sunset

provisions of Section 2-70

.

[35 ILCS

120/2-5(16)].

1)         For example, federal law prohibits

sellers from charging tax to Amtrak when it purchases

tangible personal property

.  However, federal law does not relieve the seller of

retailers' occupation tax

liability in these transactions.  For that reason, the exemption set out

in this subsection is necessary to relieve the seller of

retailers' occupation tax

liability when making sales of

tangible

personal property

to Amtrak

w prohibits

sellers from charging tax to Amtrak when it purchases

tangible personal property

.  However, federal law does not relieve the seller of

retailers' occupation tax

liability in these transactions.  For that reason, the exemption set out

in this subsection is necessary to relieve the seller of

retailers' occupation tax

liability when making sales of

tangible

personal property

to Amtrak.

2)         The nontaxable transaction set out

above is also applicable to local

retailers'

occupation tax

imposed by

municipalities, counties, the Regional Transportation Authority, and Metro East

Mass Transit District;

t)          of

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

[625 ILCS 5]

.  This

subsection (t)

is exempt from

the

sunset

provisions of Section 2-70.

[35 ILCS 120/2-5(2)]  See also Section 130.305 of this Part;

u)         through June 30, 2003,

and

beginning again on September 1, 2004

through August 30, 2014

, of

graphic arts machinery and equipment, including repair and replacement parts.

[35

ILCS 120/2-5(4)]  See also Section 130.330 of this Part;

v)         of

a

motor vehicle that is used for automobile renting, as defined in the Automobile

Renting Occupation and Use Tax Act

[35

ILCS 155].

This

subsection (v)

is exempt from the

sunset

provisions of Section 2-70

1, 2004

through August 30, 2014

, of

graphic arts machinery and equipment, including repair and replacement parts.

[35

ILCS 120/2-5(4)]  See also Section 130.330 of this Part;

v)         of

a

motor vehicle that is used for automobile renting, as defined in the Automobile

Renting Occupation and Use Tax Act

[35

ILCS 155].

This

subsection (v)

is exempt from the

sunset

provisions of Section 2-70

.

[35 ILCS 120/2-5(5)]  Motor vehicles that qualify for

this exemption are those that meet the definition of "automobile"

under the Automobile Renting Occupation and Use Tax Act, including:

1)

any

motor vehicle of the first division

;

or

2)

a motor vehicle of the second

division which:

A)

is a self-contained motor vehicle

designed or permanently converted to provide living quarters for recreational,

camping, or travel use, with direct walk through access to the living quarters

from the driver's seat;

B)

is of the van configuration designed

for the transportation of not less than 7 nor more than 16 passengers, as

defined in Section 1-146 of the Illinois Vehicle Code; or

C)

has a Gross Vehicle Weight Rating,

as defined in Section 1-124.5 of the Illinois Vehicle Code, of 8,000 pounds or

less.

[35 ILCS 155/2]

;

w)        of

personal property sold by a

teacher-sponsored student organization affiliated with an elementary or

secondary school located in Illinois.

[35 ILCS 120/2-5(6)] See also

Section 130.2006 of this Part.  This exemption existed prior to the enactment

of Section 2-70 and will not sunset;

x)         of

personal property sold to an

Illinois county fair association for use in conducting, operating, or promoting

the county fair.

[35 ILCS 120/2-5(8)]  This exemption existed prior to the

enactment of Section 2-70 and will not sunset;

y)         of

personal property sold to a

not-for-profit arts or cultural

organization that establishes that it

has received an exemption under Section 501(c)(3) of the Internal Revenue Code

(26 U.S.C

is county fair association for use in conducting, operating, or promoting

the county fair.

[35 ILCS 120/2-5(8)]  This exemption existed prior to the

enactment of Section 2-70 and will not sunset;

y)         of

personal property sold to a

not-for-profit arts or cultural

organization that establishes that it

has received an exemption under Section 501(c)(3) of the Internal Revenue Code

(26 U.S.C. 501)

and that is organized and operated for the presentation or

support of arts or cultural programming, activities, or services.  On and after

July 1, 2001, the qualifying organizations listed

in this subsection (y)

must also be 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.

[35 ILCS 120/2-5(9)]  See also Section 130.2004 of this

Part.  This exemption existed prior to the enactment of Section 2-70 and will

not sunset;

z)         of

personal property sold by a

corporation, society, association, foundation, institution, or organization,

other than a limited liability company, that is organized and operated as a

not-for-profit service enterprise for the benefit of persons 65 years of age or

older if the personal property was not purchased by the enterprise for the

purpose of resale by the enterprise.

[35 ILCS 120/2-5(10)] See also

Section 130.2008 of this Part.  This exemption existed prior to the enactment

of Section 2-70 and will not sunset;

aa)       of

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

, unless the items are transferred as jewelry and therefore subject

to tax

ion 130.2008 of this Part.  This exemption existed prior to the enactment

of Section 2-70 and will not sunset;

aa)       of

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

, unless the items are transferred as jewelry and therefore subject

to tax.  [35 ILCS 120/2-5(18)]  This exemption existed prior to the enactment

of Section 2-70 and will not sunset;

bb)       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

.

[35 ILCS 120/2-5(20)]  See also Section

130.2000 of this Part.  This exemption existed prior to the enactment of Section

2-70 and will not sunset;

cc)       beginning July 1, 2003

and

until July 1, 2028,

of

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 Motor Vehicle Code

[625 ILCS 5]

.

The Department, however, will not approve any claims for credit or

refunds

on or after August 16, 2013, for

taxes

due or

paid during the period beginning July 1, 2003

through August 16, 2013.

[35

ILCS 120/2-5(21)]

This exemption was

to terminate by operation of the sunset provisions of Section 2-70 of the

Retailers' Occupation Tax Act on August 15, 2018.

Pursuant to P.A. 100-0594, effective

June 29, 2018, the exemption provided in this

subsection (cc) is extended until July 1, 2023.

Pursuant to P.A. 102-0700, effective April 19, 2022, the

exemption provided in this subsection (cc) is extended until July 1, 2028

mption was

to terminate by operation of the sunset provisions of Section 2-70 of the

Retailers' Occupation Tax Act on August 15, 2018.

Pursuant to P.A. 100-0594, effective

June 29, 2018, the exemption provided in this

subsection (cc) is extended until July 1, 2023.

Pursuant to P.A. 102-0700, effective April 19, 2022, the

exemption provided in this subsection (cc) is extended until July 1, 2028.

[35 ILCS 120/2-5(21)]  See also Sections 130.350

and 130.351 of this Part;

dd)      of

fuel and petroleum products sold

to or used by an air carrier, certified by the carrier to be used for

consumption, shipment, or storage in the conduct of its business as an air

common carrier, for a flight destined for or returning from a location or locations

outside the United States without regard to previous or subsequent domestic

stopovers. Beginning July 1, 2013,

the exemption applies to

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 is engaged in foreign trade or is

engaged in trade between the United States and any of its possessions and that

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.

[35 ILCS

120/2-5(22)]  See also Section 130.321 of this Part.

This exemption existed prior to the enactment of Section 2-70 of the

Retailers' Occupation Tax Act and will not sunset;

ee)       of

semen used for artificial

insemination of livestock for direct agricultural production

.  [35 ILCS

120/2-5(26)]  Exemption certifications must be executed by the purchaser

ight number of that aircraft.

[35 ILCS

120/2-5(22)]  See also Section 130.321 of this Part.

This exemption existed prior to the enactment of Section 2-70 of the

Retailers' Occupation Tax Act and will not sunset;

ee)       of

semen used for artificial

insemination of livestock for direct agricultural production

.  [35 ILCS

120/2-5(26)]  Exemption certifications must be executed by the purchaser.  The

certificate must include the seller's name and address, the purchaser's name

and address, the purchaser's registration number with the Department, the

purchaser's signature and date of signing, and a statement that the semen

purchased will be used for artificial insemination of livestock for direct

agricultural production.  The certificates shall be retained by the retailer

and shall be made available to the Department for inspection or audit.  This

exemption existed prior to the enactment of the sunset provisions of Section

2-70 and will not sunset;

ff)

of

a transaction in which

the purchase order is received by a florist who is located outside Illinois,

but who has a florist located in Illinois deliver the property to the purchaser

or the purchaser's donee in Illinois.

[35 ILCS 120/2-5(23)]  This

exemption existed prior to the enactment of Section 2-70 and will not sunset;

gg)

of

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

exemption applies for all periods beginning May 30, 1995, but no claim for

credit or refund is allowed on or after January 1, 2008 for taxes paid during

the period beginning May 30, 2000 and ending January 1, 2008.  This

subsection

(gg)

is exempt from the

sunset

provisions of Section 2-70

ng Association, or Jockey Club, as

appropriate, used for purposes of breeding or racing for prizes.  This

exemption applies for all periods beginning May 30, 1995, but no claim for

credit or refund is allowed on or after January 1, 2008 for taxes paid during

the period beginning May 30, 2000 and ending January 1, 2008.  This

subsection

(gg)

is exempt from the

sunset

provisions of Section 2-70.

[35 ILCS 120/2-5(27)];

hh)

effective January 1,

1996, through December 31, 2000, and

beginning August 2, 2001,

of

computers and communications equipment utilized

for any hospital purpose and equipment used in the diagnosis, analysis, or

treatment of hospital patients sold to a lessor who leases the equipment, under

a lease of one year or longer executed or in effect at the time of the

purchase, to a hospital that has been issued an active tax exemption

identification number by the Department under Section 1g of

the

Act.  This

subsection (hh)

is

exempt from the

sunset

provisions of Section 2-70.

[35 ILCS 120/2-5(36)]  See also Section 130.2011

of this Part;

ii)

effective January 1,

1996, through December 31, 2000, and

beginning August 2, 2001,

of

personal property sold to a lessor who leases

the property, under a lease of one year or longer executed or in effect at the

time of the purchase, to a governmental body that has been issued an active tax

exemption identification number by the Department under Section 1g of

the

Act

.

This

subsection (ii)

is exempt from the

sunset

provisions of Section 2-70.

[35 ILCS

120/2-5(37)]  See also Section 130.2012 of this Part;

jj)

of

tangible personal

property sold to a common carrier by rail or motor that receives the physical

possession of the property in Illinois and that transports the property, or

shares with another common carrier in the transportation of the property, out

of Illinois on a standard uniform bill of lading showing the seller of the

property as the shipper or consignor of the property to a destination outside

Illinois, for use outside Illinois

n carrier by rail or motor that receives the physical

possession of the property in Illinois and that transports the property, or

shares with another common carrier in the transportation of the property, out

of Illinois on a standard uniform bill of lading showing the seller of the

property as the shipper or consignor of the property to a destination outside

Illinois, for use outside Illinois.

[35 ILCS 120/2-5(17)]  This exemption

existed prior to the enactment of Section 2-70 and will not sunset;

kk)

Game Birds

1)         beginning

July 1, 1999 through August 15, 2011, of game or game birds purchased at:

A)        a game

breeding and hunting preserve area licensed by the Department of Natural

Resources (see Section 3.27 of the Wildlife Code [520 ILCS 5/3.27]);

B)        an

exotic game hunting area licensed by the Department of Natural Resources (520

ILCS 5/3.34 repealed by P.A. 97-431, effective 8-16-11); or

C)        a

hunting enclosure approved through rules adopted by the Department of Natural

Resources;

2)         beginning

August 16, 2011, of

game or game birds sold at a

"game breeding

and hunting preserve area" as that term is used in the Wildlife Code

.

This

subsection (kk)(2)

is exempt from the

sunset

provisions

of Section 2-70.

[35 ILCS 120/2-5(32)];

ll)

beginning

January 1, 2000,

of

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

ing

January 1, 2000,

of

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

subsection (ll)

does not apply to fundraising

events

:

1)

for

the benefit of private home instruction

;

or

2)

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

subsection (ll)

is exempt from the

sunset

provisions of Section 2-70.

[35 ILCS 120/2-5(34)];

mm)     of

machinery or equipment used in the operation of a high impact service facility

located within an enterprise zone established pursuant to the Illinois

Enterprise Zone Act

[20 ILCS 655]

.

[35 ILCS 120/1j]

"High impact service

facility" means a facility used primarily for the sorting, handling and

redistribution of mail, freight, cargo, or other parcels received from agents

or employees of the handler or shipper for processing at a common location and

redistribution to other employees or agents for delivery to an ultimate

destination on an item-by-item basis, and which:

1)

will

make an investment in a business enterprise project of $100,000,000 or more;

2)

will

cause the creation of at least 750 to 1,000 jobs or more in an enterprise zone

established pursuant to the Illinois Enterprise Zone Act; and

3)

is

certified by the Department of Commerce and Economic Opportunity as

contractually obligated to meet the requirements specified in

subsections

(mm)(1) and (2)

within the time period as specified by the certification

of $100,000,000 or more;

2)

will

cause the creation of at least 750 to 1,000 jobs or more in an enterprise zone

established pursuant to the Illinois Enterprise Zone Act; and

3)

is

certified by the Department of Commerce and Economic Opportunity as

contractually obligated to meet the requirements specified in

subsections

(mm)(1) and (2)

within the time period as specified by the certification.

The certificate of eligibility for exemption shall be presented by the business

enterprise to its supplier when making the initial purchase of machinery and

equipment for which an exemption is granted by Section 1j of

the

Act,

together with a certification by the business enterprise that such machinery

and equipment is exempt from taxation under Section 1j of

the

Act and by

indicating the exempt status of each subsequent purchase on the face of the

purchase order.

[35 ILCS 120/1i]  This exemption existed prior to the

enactment of Section 2-70 and will not sunset;

nn)

beginning August 23, 2001 and

through June 30, 2016,

of

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 5 of the Illinois Public Aid Code who resides in a licensed

long-term care facility, as defined in the Nursing Home Care Act,

or

a licensed facility as defined in the ID/DD Community Care Act

[210 ILCS

47]

, the MC/DD Act

[210 ILCS 46]

, or the Specialized Mental Health

Rehabilitation Act of 2013

[210 ILCS 49]

use, when purchased for use by a person receiving medical assistance

under Article 5 of the Illinois Public Aid Code who resides in a licensed

long-term care facility, as defined in the Nursing Home Care Act,

or

a licensed facility as defined in the ID/DD Community Care Act

[210 ILCS

47]

, the MC/DD Act

[210 ILCS 46]

, or the Specialized Mental Health

Rehabilitation Act of 2013

[210 ILCS 49]

.

[35 ILCS 120/2-5(35-5)];

oo)

beginning July 1, 2007, of an

aircraft, as defined in Section 3 of the Illinois Aeronautics Act

[620 ILCS

5]

, if all of the following conditions are met:

1)

the aircraft leaves this State

within 15 days after the later of either the issuance of the final billing for

the sale of the aircraft, or the authorized approval for return to service,

completion of the maintenance record entry, and completion of the test flight

and ground test for inspection, as required by 14 CFR 91.407;

2)

the aircraft is not based or

registered in this State after the sale of the aircraft; and

3)

the

seller retains books and records

as required by the Department

.

This

subsection (oo)

is exempt from the

sunset

provisions of Section

2-70.

[35 ILCS 120/2-5(25-7)]  See also Section 130.605 of this Part;

pp)       effective

October 11, 2007, of

tangible personal property sold to a public-facilities

corporation, as described in Section 11-65-10 of the Illinois Municipal Code

[65 ILCS 5/11-65-10]

, for purposes of constructing or furnishing a municipal

convention hall.  This exemption includes existing public-facilities

corporations, if, before

October 11, 2007

, a municipality has

incorporated a public-facilities corporation and the public-facilities

corporation complies with the requirements set forth in Section 11-65-10.  This

subsection (pp)

is exempt from the

sunset

provisions of Section

2-70

s of constructing or furnishing a municipal

convention hall.  This exemption includes existing public-facilities

corporations, if, before

October 11, 2007

, a municipality has

incorporated a public-facilities corporation and the public-facilities

corporation complies with the requirements set forth in Section 11-65-10.  This

subsection (pp)

is exempt from the

sunset

provisions of Section

2-70.

[35 ILCS 120/2-5(41); 65 ILCS 5/11-65-25];

qq)

beginning

January 1, 2008,

of

tangible personal property used in the construction

or maintenance of community water supplies, as defined under Section 3.145 of

the Environmental Protection Act

[415 ILCS 5]

, 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

subsection (qq)

is

exempt from the

sunset

provisions of Section 2-70.

[35 ILCS

120/2-5(39)];

rr)

Aircraft

Maintenance

beginning January 1, 2010

through

December 31, 2029

,

of

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

ment, 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.

1)

Beginning January 1, 2010 and continuing

through December 31, 2023, this

exemption applies only to the

sale of qualifying tangible personal property to persons who modify, refurbish,

complete, replace, or maintain an aircraft and who

hold an Air Agency Certificate and are empowered to operate an approved repair

station by the Federal Aviation Administration, have a Class IV Rating, and

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.

2)

From January 1, 2024 through December 31,

2029, this exemption applies only to the sale of qualifying tangible personal

property to:

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

(rr)(2)(A)

n 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

(rr)(2)(A)

.

3)

It is the intent of the General Assembly that

the exemption 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

.  [35 ILCS 120/2-5(40)]

ss)

effective

July 12, 2006,

of building materials to be incorporated into real estate

within a River Edge Redevelopment Zone in accordance with the River Edge

Redevelopment Zone Act

[65 ILCS 115]

by remodeling, rehabilitating, or

new construction.  The provisions of this

subsection

are exempt from

the

sunset provisions of

Section 2-70.

[35 ILCS 120/2-54]  See also

Section 130.1954 of this Part;

tt)

of

electricity delivered to customers by wire; natural or artificial gas that is delivered

to customers through pipes, pipelines, or mains; and water that is delivered to

customers through pipes, pipelines, or mains.

These provisions are

declaratory of existing law as to the meaning and scope of

the

Act

rovisions of

Section 2-70.

[35 ILCS 120/2-54]  See also

Section 130.1954 of this Part;

tt)

of

electricity delivered to customers by wire; natural or artificial gas that is delivered

to customers through pipes, pipelines, or mains; and water that is delivered to

customers through pipes, pipelines, or mains.

These provisions are

declaratory of existing law as to the meaning and scope of

the

Act.

[35

ILCS 120/2]  These types of sales are outside the scope of the Retailers'

Occupation Tax Act;

uu)

beginning

on January 1, 2002 through June 30, 2016,

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 for the purpose of

subsequently transporting it outside this State for use or consumption

thereafter solely outside this State or 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.

[35 ILCS 120/2-5(38)]  See

also 86 Ill. Adm. Code 150.310 of this Part;

vv)

beginning

January 1, 2017, through December 31, 2026,

of

menstrual pads, tampons,

and menstrual cups.

[35 ILCS 120/2-5(42)];

ww)

beginning July 1, 2022,

of

breast pumps,

breast pump collection and storage supplies, and breast pump kits.

This

subsection (ww)

is exempt from the

sunset

provisions of Section

2-70

.

As used in this

subsection (ww):

1)

"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

-70

.

As used in this

subsection (ww):

1)

"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.

2)

"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.

3)

"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.

4)

"Breast pump collection and storage

supplies" does not include: bottles and bottle caps not specific to the

operation of the breast pump; breast pump travel bags and other similar

carrying accessories, including ice packs, labels, and other similar products;

breast pump cleaning supplies; nursing bras, bra pads, breast shells, and other

similar products; and 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.

5)

"Breast pump kit" means a kit that:

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 is

pre-packaged as a breast pump kit by the breast pump manufacturer or

distributor

ged by the breast pump

manufacturer or distributor.

5)

"Breast pump kit" means a kit that:

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 is

pre-packaged as a breast pump kit by the breast pump manufacturer or

distributor.

[

35

ILCS 120/46

]

;

xx)

of

tangible personal property sold by or on behalf of the State Treasurer pursuant

to the Revised Uniform Unclaimed Property Act.  This

subsection (xx)

is

exempt from the

sunset

provisions of Section 2-70.

[35 ILCS 120/(47)]

yy)       of

merchandise that is subject to the Rental Purchase Agreement Occupation and Use

Tax. The purchaser must certify that the item is purchased to be rented subject

to a rental purchase agreement, as defined in the Rental Purchase Agreement

Act, and provide proof of registration under the Rental Purchase Agreement

Occupation and Use Tax Act. This

subsection (yy)

is exempt from the

sunset

provisions of Section 2-70.

[35 ILCS 120/2-5(43)];

zz)

beginning

January 1, 2024,

of

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 documenting

that the transaction is eligible for the exemption under this

Section

.

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, Coast

Guard,

or Space Force.

This

subsection (zz)

is exempt from the

sunset

provisions of Section 2-70

ng

that the transaction is eligible for the exemption under this

Section

.

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, Coast

Guard,

or Space Force.

This

subsection (zz)

is exempt from the

sunset

provisions of Section 2-70.

[35 ILCS 120/2-5(48)];

aaa)

beginning

July 1, 2024,

of

home-delivered meals provided to Medicare or Medicaid

recipients when payment is made by an intermediary, such as a Medicare

Administrative Contractor, a Managed Care Organization, or a Medicare Advantage

Organization, pursuant to a government contract.  This

subsection (aaa)

is exempt from the

sunset

provisions of Section 2-70.

[35 ILCS

120/2-5(49) as enacted by P.A. 103-0643];

bbb)

gross

receipts from the lease of the following tangible personal property:

1)         beginning

on January 1, 2025 and through December 31, 2029,

computer software

transferred subject to a license that meets the following requirements:

A)

it

is evidenced by a written agreement signed by the licensor and the customer;

i)

an

electronic agreement in which the customer accepts the license by means of an

electronic signature that is verifiable and can be authenticated and is

attached to or made part of the license will comply with this requirement;

ii)

a

license agreement in which the customer electronically accepts the terms by

clicking "I agree" does not comply with this requirement;

B)

it

restricts the customer's duplication and use of the software;

C)

it

prohibits the customer from licensing, sublicensing, or transferring the

software to a third party (except to a related party) without the permission

and continued control of the licensor;

D)

the

licensor has a policy of providing another copy at minimal or no charge if the

customer loses or damages the software, or of permitting the licensee to make

and keep an archival copy, and such policy is either stated in the

rom licensing, sublicensing, or transferring the

software to a third party (except to a related party) without the permission

and continued control of the licensor;

D)

the

licensor has a policy of providing another copy at minimal or no charge if the

customer loses or damages the software, or of permitting the licensee to make

and keep an archival copy, and such policy is either stated in the license

agreement, supported by the licensor's books and records, or supported by a

notarized statement made under penalties of perjury by the licensor; and

E)

the

customer must destroy or return all copies of the software to the licensor at

the end of the license period; this provision is deemed to be met, in the case

of a perpetual license, without being set forth in the license agreement; and

2)         beginning

on January 1, 2025 and through December 31, 2029,

property that is subject

to a tax on lease receipts imposed by a home rule unit of local government if

the ordinance imposing that tax was adopted prior to January 1, 2023.

[35

ILCS 120/2-5(49) as enacted by Public Act 103-592]