SB0716eng 94TH GENERAL ASSEMBLY

SB0716 Engrossed LRB094 08554 BDD 38761 b

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Use Tax Act is amended by changing Section 2a as follows:

(35 ILCS 105/2a) (from Ch. 120, par. 439.2a)

Sec. 2a. Pollution control facilities.

(a) As used in this subsection (a), "pollution control facilities" means any system, method, construction, device or appliance appurtenant thereto sold or used or intended for the primary purpose of eliminating, preventing, or reducing air and water pollution as the term "air pollution" or "water pollution" is defined in the "Environmental Protection Act", enacted by the 76th General Assembly, or for the primary purpose of treating, pretreating, modifying or disposing of any potential solid, liquid or gaseous pollutant which if released without such treatment, pretreatment, modification or disposal might be harmful, detrimental or offensive to human, plant or animal life, or to property.

Until July 1, 2003, the purchase, employment and transfer of such tangible personal property as pollution control facilities is not a purchase, use or sale of tangible personal property.

(b) Beginning July 1, 2005, tangible personal property that is certified by the Pollution Control Board as a "pollution control facility", as that term is defined in Section 11-10 of the Property Tax Code, is exempt from the tax imposed by this Act if the property is used as part of a livestock management facility or a livestock waste handling facility (i) that has been approved by the Department of Agriculture under the provisions of the Livestock Management Facilities Act and (ii) that is located within an agricultural area established by a county under the Agricultural Areas Conservation and Protection Act.

To document this exemption, a purchaser must provide the retailer with a copy of the certification issued by the Pollution Control Board, along with a certification, verified by the purchaser, that the tangible personal property will be used primarily as a pollution control facility in an approved livestock management facility or livestock waste handling facility located in an agricultural area.

The provisions of this subsection (b) are exempt from Section 3-90.

(Source: P.A. 93-24, eff. 6-20-03.)

Section 10. The Service Use Tax Act is amended by changing Section 2a as follows:

(35 ILCS 110/2a) (from Ch. 120, par. 439.32a)

Sec. 2a. Pollution control facilities.

(a) As used in this subsection (a), "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.

(b) Beginning July 1, 2005, tangible personal property that is certified by the Pollution Control Board as a "pollution control facility", as that term is defined in Section 11-10 of the Property Tax Code, is exempt from the tax imposed by this Act if the property is used as part of a livestock management facility or a livestock waste handling facility (i) that has been approved by the Department of Agriculture under the provisions of the Livestock Management Facilities Act and (ii) that is located within an agricultural area established by a county under the Agricultural Areas Conservation and Protection Act.

To document this exemption, a purchaser must provide the retailer with a copy of the certification issued by the Pollution Control Board, along with a certification, verified by the purchaser, that the tangible personal property will be used primarily as a pollution control facility in an approved livestock management facility or livestock waste handling facility located in an agricultural area.

The provisions of this subsection (b) are exempt from Section 3-75.

(Source: P.A. 93-24, eff. 6-20-03.)

Section 15. The Service Occupation Tax Act is amended by changing Section 2a as follows:

(35 ILCS 115/2a) (from Ch. 120, par. 439.102a)

Sec. 2a. Pollution control facilities.

(a) As used in this subsection (a), "pollution control facilities" means any system, method, construction, device or appliance appurtenant thereto transferred by a serviceman for the primary purpose of eliminating, preventing, or reducing air and water pollution as the term "air pollution" or "water pollution" is defined in the "Environmental Protection Act", enacted by the 76th General Assembly, or for the primary purpose of treating, pretreating, modifying or disposing of any potential solid, liquid or gaseous pollutant which if released without such treatment, pretreatment, modification or disposal might be harmful, detrimental or offensive to human, plant or animal life, or to property.

Until July 1, 2003, the purchase, employment and transfer of such tangible personal property as pollution control facilities shall not be deemed to be a purchase, use or sale of service or of tangible personal property, but shall be deemed to be intangible personal property.

(b) Beginning July 1, 2005, tangible personal property that is certified by the Pollution Control Board as a "pollution control facility", as that term is defined in Section 11-10 of the Property Tax Code, is exempt from the tax imposed by this Act if the property is used as part of a livestock management facility or a livestock waste handling facility (i) that has been approved by the Department of Agriculture under the provisions of the Livestock Management Facilities Act and (ii) that is located within an agricultural area established by a county under the Agricultural Areas Conservation and Protection Act.

To document this exemption, a purchaser must provide the retailer with a copy of the certification issued by the Pollution Control Board, along with a certification, verified by the purchaser, that the tangible personal property will be used primarily as a pollution control facility in an approved livestock management facility or livestock waste handling facility located in an agricultural area.

The provisions of this subsection (b) are exempt from Section 3-55.

(Source: P.A. 93-24, eff. 6-20-03.)

Section 20. The Retailers' Occupation Tax Act is amended by changing Sections 1a and 5k as follows:

(35 ILCS 120/1a) (from Ch. 120, par. 440a)

Sec. 1a. Pollution control facilities.

(a) As used in this subsection (a), "pollution control facilities" means any system, method, construction, device or appliance appurtenant thereto sold or used or intended for the primary purpose of eliminating, preventing, or reducing air and water pollution as the term "air pollution" or "water pollution" is defined in the "Environmental Protection Act", enacted by the 76th General Assembly, or for the primary purpose of treating, pretreating, modifying or disposing of any potential solid, liquid or gaseous pollutant which if released without such treatment, pretreatment, modification or disposal might be harmful, detrimental or offensive to human, plant or animal life, or to property.

Until July 1, 2003, the purchase, employment and transfer of such tangible personal property as pollution control facilities is not a purchase, use or sale of tangible personal property.

(b) Beginning July 1, 2005, tangible personal property that is certified by the Pollution Control Board as a "pollution control facility", as that term is defined in Section 11-10 of the Property Tax Code, is exempt from the tax imposed by this Act if the property is used as part of a livestock management facility or a livestock waste handling facility (i) that has been approved by the Department of Agriculture under the provisions of the Livestock Management Facilities Act and (ii) that is located within an agricultural area established by a county under the Agricultural Areas Conservation and Protection Act.

To document this exemption, a purchaser must provide the retailer with a copy of the certification issued by the Pollution Control Board, along with a certification, verified by the purchaser, that the tangible personal property will be used primarily as a pollution control facility in an approved livestock management facility or livestock waste handling facility located in an agricultural area.

The provisions of this subsection (b) are exempt from Section 2-70.

(Source: P.A. 93-24, eff. 6-20-03.)

(35 ILCS 120/5k) (from Ch. 120, par. 444k)

Sec. 5k. Building materials exemption; enterprise zones and agricultural areas.

(a) Each retailer who makes a qualified sale of building materials to be incorporated into real estate in an enterprise zone established by a county or municipality under the Illinois Enterprise Zone Act by remodeling, rehabilitation or new construction, may deduct receipts from such sales when calculating the tax imposed by this Act. For purposes of this Section, "qualified sale" means a sale of building materials that will be incorporated into real estate as part of a building project for which a Certificate of Eligibility for Sales Tax Exemption has been issued by the administrator of the enterprise zone in which the building project is located. To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the Certificate of Eligibility for Sales Tax Exemption issued by the administrator of the enterprise zone into which the building materials will be incorporated. The Certificate of Eligibility for Sales Tax Exemption must contain:

(1) a statement that the building project identified in the Certificate meets all the requirements for the building material exemption contained in the enterprise zone ordinance of the jurisdiction in which the building project is located;

(2) the location or address of the building project; and

(3) the signature of the administrator of the enterprise zone in which the building project is located.

In addition, the retailer must obtain certification from the purchaser that contains:

(1) a statement that the building materials are being purchased for incorporation into real estate located in an Illinois enterprise zone;

(2) the location or address of the real estate into which the building materials will be incorporated;

(3) the name of the enterprise zone in which that real estate is located;

(4) a description of the building materials being purchased; and

(5) the purchaser's signature and date of purchase.

The deduction allowed by this Section for the sale of building materials may be limited, to the extent authorized by ordinance, adopted after the effective date of this amendatory Act of 1992, by the municipality or county that created the enterprise zone into which the building materials will be incorporated. The ordinance, however, may neither require nor prohibit the purchase of building materials from any retailer or class of retailers in order to qualify for the exemption allowed under this Section.

(b) Beginning July 1, 2005, each retailer who makes a qualified sale of building materials to be incorporated into real estate as part of a livestock management facility, livestock pasture operation, or livestock waste handling facility located in an agricultural area established by a county under the Agricultural Areas Conservation and Protection Act by new construction, may deduct receipts from those sales when calculating the tax imposed by this Act. For purposes of this subsection, "qualified sale" means a sale of building materials that will be incorporated into real estate (i) in a livestock management facility or livestock waste handling facility that has been approved by the Department of Agriculture under the provisions of the Livestock Management Facilities Act or (ii) in a livestock pasture operation that is not subject to the Livestock Management Facilities Act, as provided in the definition of "livestock management facility" in that Act. For purposes of this subsection, the terms "livestock management facility" and "livestock waste handling facility" have the meanings set forth in Sections 10.30 and 10.40 of the Livestock Management Facilities Act.

To be eligible for the exemption under this subsection, the livestock management facility, livestock pasture operation, or livestock waste handling facility must be located within an agricultural area established by a county pursuant to the provisions of the Agricultural Areas Conservation and Protection Act. To document the exemption allowed under this subsection, the retailer must obtain from the purchaser a copy of a Certificate of Eligibility for Sales Tax Exemption issued by the Department of Agriculture, based on information provided to the Department of Agriculture by the county board governing the agricultural area into which the building materials will be incorporated. The Certificate of Eligibility for Sales Tax Exemption must contain:

(1) a certification by the Department of Agriculture (i) that the livestock management facility, livestock pasture operation, or livestock waste handling facility has been approved by the Department of Agriculture under the provisions of the Livestock Management Facilities Act or (ii) that the facility is otherwise exempt from such approval;

(2) the location or address of the livestock management facility, livestock pasture operation, or livestock waste handling facility; and

(3) a certification by the Department of Agriculture that the livestock management facility, livestock pasture operation, or livestock waste handling facility is located within an agricultural area established by a county under the provisions of the Agricultural Areas Conservation and Protection Act and reported by the county to the Department of Agriculture. In addition, the retailer must obtain certification from the purchaser that contains:

(1) a statement that the building materials are being purchased for incorporation into real estate at a livestock management facility, livestock pasture operation, or livestock waste handling facility that has been approved by the Department of Agriculture or that is exempt from approval and that is located in an Illinois agricultural area;

(2) the location or address of the livestock management facility, livestock pasture operation, or livestock waste handling facility into which the building materials will be incorporated;

(3) the name of the agricultural area in which the livestock management facility, livestock pasture operation, or livestock waste handling facility is located;

(4) a description of the building materials being purchased; and

(5) the purchaser's signature and date of purchase.

(c) The provisions of this Section are exempt from Section 2-70.

(Source: P.A. 91-51, eff. 6-30-99; 91-954, eff. 1-1-02; 92-484, eff. 8-23-01; 92-779, eff. 8-6-02.)

Section 99. Effective date. This Act takes effect upon becoming law.