Current through Register Vol. 48, No. 12, March 22, 2024
a) Beginning January 1, 2006, each
retailer that makes a qualified sale of building materials to be incorporated
into real estate in a redevelopment project area within an intermodal terminal
facility area in accordance with Section 11-74.4-3.1 of the Illinois Municipal
Code by remodeling, rehabilitating, or new construction may deduct receipts
from those sales when calculating the tax imposed by the Retailers'
Occupation Tax Act. [35 ILCS
120/2-6]
b) Definitions
1)
As used in this Section,
"intermodal terminal facility" means land, improvements to land, equipment, and
appliances necessary for the receipt and transfer of goods between one mode of
transportation and another, at least one of which must be transportation by
rail. "Intermodal terminal facility area" means an area that:
A)
does not include any existing
intermodal facility or includes an obsolete intermodal
facility;
B)
comprises a minimum of 150 acres and not more than 2 square miles in
total area, exclusive of lakes and waterways;
C)
has at least one Class 1 railroad
right-of-way located within it or within one quarter mile of it;
and
D)
has no
boundary limit further than 3 miles from the right-of-way.
[65 ILCS
5/11-74.4-3.1(c)]
2)
For purposes of this Section,
"qualified sale" means a sale of building materials that will be incorporated
into real estate as part of an industrial or commercial project for which a
Certificate of Eligibility for Sales Tax Exemption has been issued by the
corporate authorities of the municipality in which the building project is
located. [35 ILCS 120/2-6]
c) Qualifying Building Materials
In order to qualify for the deduction, the materials being
purchased must be building materials purchased for physical incorporation into
real estate as part of an industrial or commercial project in a redevelopment
project area within an intermodal terminal facility area certified by the
corporate authorities of the municipality in which the building project is
located. For example, gross receipts from sales of the following can qualify
for the deduction:
1) Common building
materials such as lumber, bricks, cement, windows, doors, insulation, roofing
materials, and sheet metal;
2) Any
trackage, ties, ballast, spikes, plates, high mast lighting, and cranes that
are physically incorporated into the redevelopment project area of the
intermodal terminal facility;
3)
Plumbing systems and their components such as bathtubs, lavatories, sinks,
faucets, garbage disposals, water pumps, water heaters, water softeners, and
water pipes;
4) Heating systems and
their components such as furnaces, ductwork, vents, stokers, boilers, heating
pipes, and radiators;
5) Electrical
systems and their components such as wiring, outlets, and light fixtures that
are physically incorporated into the redevelopment project area of the
intermodal terminal facility;
6)
Central air-conditioning systems, ventilation systems and their components that
are physically incorporated into the redevelopment project area of the
intermodal terminal facility;
7)
Built-in cabinets and other woodwork that is physically incorporated into the
building located in the redevelopment project area of the intermodal terminal
facility;
8) Built-in appliances
such as refrigerators, stoves, ovens, and trash compactors that are physically
incorporated into the building located in the redevelopment project area of the
intermodal terminal facility;
9)
Floor coverings such as tile, linoleum and carpeting that are glued or
otherwise permanently affixed to the building in the redevelopment project area
location by use of tacks, staples, or wood stripping filled with nails that
protrude upward (sometimes referred to as "tacking strips" or "tack-down
strips"); and
10) Landscape
products such as trees, shrubs, topsoil, and sod that are physically
incorporated (i.e., permanently transplanted) into the redevelopment project
area within the intermodal terminal facility area.
d) Non-Qualifying Building Materials
Items that are not physically incorporated into an industrial
or commercial project within the redevelopment project area within an
intermodal terminal facility as certified by the corporate authorities of the
municipality in which the redevelopment project area is located cannot qualify
for the deduction. For example, gross receipts from sales of the following do
not qualify for the deduction:
1)
Tools, machinery, equipment, fuel, forms, and other items that may be used by a
construction contractor at a redevelopment project area location, but are not
physically incorporated into the redevelopment project area;
2) Free standing appliances such as stoves,
ovens, refrigerators, washing machines, portable ventilation units, window air
conditioning units, lamps, clothes washers, clothes dryers, trash compactors,
and dishwashers that may be connected to and operate from a building's
electrical or plumbing system, but do not become a component of those
systems;
3) Floor coverings that
are area rugs or that are attached to the structure using only two-sided tape;
and
4) Mobile equipment, trucks or
cranes not physically incorporated into the redevelopment project area of the
intermodal terminal facility area.
e) Records - Required to Document Exemption
To document the exemption allowed under this
Section, the retailer must obtain from the purchaser a
purchaser's certificate and a copy of the Certificate of Eligibility
for Sales Tax Exemption issued by the corporate authorities of the municipality
in which the real estate into which the building materials will be incorporated
is located. [35 ILCS 120/2-6]
1) Purchaser's Certificate -
The
retailer must obtain a certificate from the purchaser that contains all of the
following:A)
A statement
that the building materials are being purchased for incorporation into real
estate located in an intermodal terminal facility area certified in accordance
with Section 11-74.4-3.1 of the Illinois Municipal Code;
B)
The location or address of the
real estate into which the building materials will be
incorporated;
C)
The name of the intermodal facility area in which the real estate is
located;
D)
A
description of the building materials being purchased; and
E)
The purchaser's signature and date
of purchase. [35 ILCS
120/2-6]
2) Certificate of Eligibility for Sales Tax
Exemption - The retailer must obtain and keep in its books and records a copy
of the Certificate of Eligibility for Sales Tax Exemption issued by the
municipality
that must contain all of the following:
A)
A statement that the commercial or
industrial project identified in the Certificate meets all the requirements of
the jurisdiction in which the project is located;
B)
The location or address of the
building project; and
C)
The signature of the chief executive office of the municipality in
which the building project is located, or the chief executive officer's
delegate. [35 ILCS
120/2-6]