Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart S - SPECIFIC APPLICATIONS › Section 130.1934 - Community Water Supply

Current through Register Vol. 48, No. 28, July 12, 2024
a) Tangible
				Personal Property Used in the Construction and Maintenance of a Community Water
				Supply - In General
Beginning January 1, 2008, tangible personal property used in
				  the construction or maintenance of a community water supply, as defined under
				  Section 3.145 of the Environmental Protection Act, that is operated by a
				  not-for-profit corporation that holds a valid water supply permit issued under
				  Title IV of the Environmental Protection Act is exempt from the tax imposed by
				  the Retailers' Occupation Tax Act. [35 ILCS
				  120/2-5(39) ]
b) Definitions
"Community water supply" means a public water supply which
				  serves or is intended to serve at least 15 service connections used by
				  residents or regularly serves at least 25 residents. (Section 3.145 of the
				  Environmental Protection Act [415 ILCS
				  5/3.145 ])
"Construction" means building, construction, reconstruction,
				  alteration, replacement, extension, rehabilitation, betterment, development,
				  embellishment, remodeling, remediation, renovation or improvement of a
				  community water supply, and adding to or subtracting from any building,
				  structure, plant, works or facility, or any part thereof.
"Maintenance" means routine, recurring and usual work for the
				  preservation, protection and keeping of any community water supply for its
				  intended purposes in a safe and continually usable condition for which it was
				  designed, improved, constructed, altered or repaired.
"Not-for-profit corporation" means a corporation subject to
				  the General Not For Profit Corporation Act of 1986 [805 ILCS
				  105/101.01 ].
"Public water supply" means all mains, pipes and structures
				  through which water is obtained and distributed to the public, including wells
				  and well structures, intakes and cribs, pumping stations, treatment plants,
				  reservoirs, storage tanks and appurtenances, collectively or severally,
				  actually used or intended for use for the purpose of furnishing water for
				  drinking or general domestic use and which serve at least 15 service
				  connections or which regularly serve at least 25 persons at least 60 days per
				  year. [415 ILCS
				  5/3.365 ]
c) Tangible Personal Property Used in the
				Construction and Maintenance of a Community Water Supply - Tangible Personal
				Property Qualifying for the Exemption
1)
				Tangible personal property purchased and used in the construction or
				maintenance of structures and physical plant owned by a community water supply
				that is physically incorporated into the structures and physical plant
				qualifies for the exemption. For example, gross receipts from sales of:
A) storage tanks, well structures, intakes
				and cribs, pumps, filters, pipes, treatment facilities and plants, and
				appurtenances, used for the purpose of furnishing water, can qualify for the
				exemption;
B) common building
				materials such as lumber, bricks, cement, windows, doors, insulation, roofing
				materials and sheet metal can qualify for the exemption;
C) plumbing systems and components of those
				systems such as bathtubs, lavatories, sinks, faucets, garbage disposals, water
				pumps, water heaters, water softeners and water pipes can qualify for the
				exemption;
D) heating systems and
				components of those systems such as furnaces, ductwork, vents, stokers,
				boilers, heating pipes and radiators can qualify for the exemption;
E) electrical systems and components of those
				systems such as wiring, outlets and light fixtures that are physically
				incorporated into the real estate can qualify for the exemption;
F) central air conditioning systems,
				ventilation systems and components of those systems that are physically
				incorporated into the real estate can qualify for the exemption;
G) built-in cabinets physically incorporated
				into the real estate can qualify for the exemption;
H) built-in appliances such as refrigerators,
				stoves, ovens and trash compactors that are physically incorporated into the
				real estate can qualify for the exemption; and
I) floor coverings such as tile, linoleum and
				carpeting that are glued or otherwise permanently affixed to the real estate by
				use of tacks, staples, or wood stripping filled with nails that protrude upward
				(sometimes referred to as "tacking strips" or "tack-down strips") can qualify
				for the exemption.