Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.1951 - Sales of Building Materials Incorporated into Real Estate within Enterprise Zones

Current through Register Vol. 48, No. 28, July 12, 2024
a) An exemption
				from Illinois Retailers' Occupation Tax liability exists for gross receipts
				from
qualified sales of building materials
that will be
incorporated into
real estate
located
in an enterprise zone established by a county or municipality under the
				Illinois Enterprise Zone Act by remodeling, rehabilitation or new
				construction
. [35 ILCS
				120/5k ]
b) Documentation for Sales Made on and after
				August 6, 2002 through June 30, 2013
1)
"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
(Exemption
				Certificate)
has been issued by the administrator of the enterprise
				zone in which the building project is located.
[35 ILCS 120/5k] During
				this period, there is no requirement that the retailer from whom the materials
				are purchased be located in a jurisdiction that created the enterprise zone
				into which the materials will be incorporated; likewise, restrictions in the
				enterprise zone ordinance in effect at the retailer's location do not apply to
				purchases of building materials for incorporation into another enterprise zone.
				The municipality or county that created the enterprise zone into which the
				materials will be incorporated can limit the exemption by ordinance, except
				that the ordinance may not require that the materials be purchased from any
				class of retailers, and it may not prohibit the purchase being made from any
				class of retailers. All "qualified sales" of building materials sold for
				incorporation into any Illinois enterprise zone are eligible for the
				exemption.
2) The Certificate of
				Eligibility for Sales Tax Exemption must contain:
A) a statement that the building project
				identified in the Certificate meets all of the requirements of the enterprise
				zone ordinance of the jurisdiction in which the building project is
				located;
B) the location or street
				address of the building project that is the subject of the
				Certificate;
C) the signature of
				the administrator of the enterprise zone in which the building project is
				located.
3)
				Certification. A retailer claiming the exemption on and after August 6, 2002
				through June 30, 2013, must have among its books and records:
A) a copy of the Certificate of Eligibility
				for Sales Tax Exemption from the administrator of the enterprise zone into
				which the materials will be incorporated; and
B) a certification from the purchaser of the
				building materials containing the following:
i) a statement that the building materials
				being purchased are being purchased for incorporation into real estate located
				in an Illinois enterprise zone,
ii)
				the location or address of that real estate,
iii) the name of the enterprise zone in which
				that real estate is located,
iv) a
				description of the building materials being purchased for incorporation into
				that real estate,
v) the date of
				the purchase, and
vi) the
				purchaser's signature.