Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart C - CERTAIN STATUTORY EXEMPTIONS › Section 130.350 - Coal 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 coal 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 coal 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. 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 coal exploration, mining, off
				highway hauling, processing, maintenance and reclamation. Equipment used 50% or
				less in 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 coal exploration, mining, off highway
				hauling, processing, maintenance and reclamation. This exemption does not
				include supplies (such as chemicals, rust inhibitors and adhesives), coolants,
				lubricants, inert limestone, magnetite and other materials added to the coal
				washing medium, 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) "Coal" means a mineral deposit or finished
				product comprised of combustible, carbon based plant fossil matter used as
				fuel.
2) "Coal Exploration" means
				the search for coal. Exploration includes, but is not limited to, geophysical
				exploration, excavating and drilling to locate coal 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 coal
				exploration, mining, off highway hauling, processing, maintenance and
				reclamation equipment in a state of repair and efficiency.
5) "Mining" means the extraction of coal from
				the earth by underground and surface mining and includes the extraction of coal
				by the mine owner or operator.
6)
				"Off Highway Hauling" means carrying or transporting and would include
				transport of overburden, waste material, including gob from the processing
				facility for disposal, and coal from the coal seam to the processing facility
				by conveyors or unlicensed vehicles, and conveying coal from the beginning of
				the processing cycle through the last stage of coal production, which ends at
				the time the coal is stored.
7)
				"Processing" means preparation activities performed directly on the coal which
				are necessary for converting coal into a finished product so that it is ready
				for sale or the reprocessing of coal mine waste to extract and recycle coal
				from the waste by the mine owner, operator or a 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 and 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 coal exploration, mining, off highway hauling,
				processing, maintenance or reclamation equipment.
10) "Used primarily" means equipment that is
				used more than 50% of the time in coal exploration, mining, off highway
				hauling, processing, maintenance and reclamation.