Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart C - CERTAIN STATUTORY EXEMPTIONS › Section 130.351 - Aggregate Exploration, Mining, Off Highway Hauling, Processing, Maintenance and Reclamation Equipment

Current through Register Vol. 48, No. 28, July 12, 2024
a) General. The exemption provided in this
				Section terminated on June 30, 2003, pursuant to P.A. 93-24. P.A. 98-456,
				effective August 16, 2013, reinstated the aggregate exemption retroactive to
				July 1, 2003. The Department, however, will not approve any claims or refunds
				on or after August 16, 2013, for taxes due or paid during the period beginning
				July 1, 2003 through August 16, 2013
.
The exemption for
				aggregate exploration, mining, off highway hauling, processing, maintenance and
				reclamation equipment will terminate by operation of the sunset provisions of
				Section 2-70 of the Retailers' Occupation Tax Act on August 16, 2018. Pursuant
				to P.A. 100-0594, effective June 29, 2018, the exemption provided in this
				Section is extended until July 1, 2023. Pursuant to P.A. 102-0700, effective
				April 19, 2022, the exemption provided in this Section is extended until July
				1, 2028. Notwithstanding the fact that the sales may be at retail, the
				Retailers' Occupation Tax Act does not apply to sales of aggregate exploration,
				mining, off highway hauling, processing, maintenance and reclamation equipment
				used primarily for the exploration and mining of mineral deposits and for the
				manufacture of resultant aggregate products. The exemption also applies to
				individual replacement parts for exempt aggregate exploration, mining, off
				highway hauling, processing, maintenance and reclamation equipment. The
				exemption also applies to equipment and replacement parts purchased for lease
				if those items are used primarily in the activities noted in this subsection.
				The exemption does not apply to motor vehicles required to be registered
				pursuant to the Illinois Vehicle Code [625 ILCS 5 ].
				This exemption applies only to equipment used primarily in aggregate
				exploration, mining, off highway hauling, processing, maintenance and
				reclamation. Use of the equipment in any other exploration, mining, off highway
				hauling, processing, maintenance and reclamation will not qualify for this
				exemption. Excluded from this exemption are motor vehicles required to be
				registered pursuant to the Illinois Vehicle Code. Special mobile equipment
				other than motor vehicles may qualify for the exemption if it is used primarily
				in aggregate exploration, mining, off highway hauling, processing, maintenance
				and reclamation. This exemption does not include supplies (such as chemicals,
				rust inhibitors, and adhesives), coolants, lubricants, reclamation materials
				(such as seed, plants and limestone), items of personal apparel (such as
				gloves, shoes, hats, helmets, coveralls, masks, mask air filters, belts,
				harnesses or holsters) or fuel of any type.
b) Definitions
1) "Aggregate" means any mineral deposit or
				finished product, including but not limited to sand, gravel, stone, clay,
				industrial minerals, composites or other mineral solids, except coal.
2) "Aggregate Exploration" means the search
				for aggregate. Exploration includes, but is not limited to, geophysical
				exploration, excavating, dredging, and drilling to locate aggregate
				deposits.
3) "Kits" means
				commercially-packaged sets of parts that are ordered from a manufacturer,
				inventoried and sold by a retailer as a single item. An example would be a
				"tire assembly" comprised of the rim, tire, foam filling and valve
				stem.
4) "Maintenance" means
				keeping aggregate exploration, mining, off highway hauling, processing,
				maintenance and reclamation equipment in a state of repair and
				efficiency.
5) "Mining" means the
				extraction of aggregate from the earth by underground and surface mining and
				includes the extraction of aggregate by the mine owner or operator.
6) "Off Highway Hauling" means carrying or
				transporting and would include transport of overburden or waste material,
				including byproduct materials from the processing facility for disposal,
				transporting aggregates from the aggregate deposit to the processing facility
				by conveyors or unlicensed vehicles, and conveying aggregates from the
				beginning of the processing cycle through the last stage of aggregate
				production, which ends at the time the aggregate is ready for sale.
7) "Processing" means preparation activities
				performed directly on the aggregate that are necessary for converting aggregate
				into a finished product so that it is ready for sale or the reprocessing of
				aggregate fines to extract and recycle construction aggregates by the mine
				owner, operator, or third party contractor or successor. Processing includes,
				but is not limited to, sizing, crushing, drying and washing.
8) "Reclamation" means conditioning areas
				affected by mining operations. Examples of reclamation activities include, but
				are not limited to, backfilling, grading, seeding and planting.
9) "Replacement Parts" means parts that are
				used to replace parts of qualifying equipment that require periodic
				replacement. To be considered a replacement part, the part must be purchased
				for the purpose of being installed and must, in fact, become a physical
				component part of aggregate exploration, mining, off highway hauling,
				processing, maintenance and reclamation equipment.
10) "Used primarily" means that the equipment
				and replacement parts must be used more than 50% of the time in aggregate
				exploration, mining, off highway hauling, processing, maintenance and
				reclamation.