SB1638 97TH GENERAL ASSEMBLY

LRB097 09394 HLH 49529 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1638

Introduced 2/9/2011, by Sen. Tim Bivins

SYNOPSIS AS INTRODUCED:

35 ILCS 120/1r new

Amends the Retailers' Occupation Tax Act. Provides that certain sales of building materials used for telecommunications towers are exempt from taxation under the Act. Provides that the exemption is not subject to the Act's automatic sunset provision. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

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

Section 5. The Retailers' Occupation Tax Act is amended by adding Section 1r as follows:

(35 ILCS 120/1r new)

Sec. 1r. Building materials exemption; rural telecommunication towers.

(a) Each retailer that makes a qualified sale of building materials to be incorporated into a telecommunication tower used to provide (i) cellular, (ii) enhanced specialized mobile radio, or (iii) personal communication services in a county with a population of less than 250,000 may deduct receipts from those sales when calculating the tax imposed by this Act.

(b) As used in this Section, "qualified sale" means a sale of building materials that will be incorporated into a telecommunication tower as described in subsection (a) of this Section, for which a Certificate of Eligibility for Sales Tax Exemption has been issued by the corporate authorities of the county or municipality in which the telecommunication tower is to be located. "Building materials" shall include, but not be limited to, all tangible personal property used in the construction of a telecommunication tower, including antennas, cables, and all adjacent accessory equipment and structures.

(c) 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 corporate authorities of the county or municipality in which the telecommunication tower is located. The Certificate of Eligibility for Sales Tax Exemption must contain all of the following:

(1) a statement that the telecommunication tower identified in the certificate meets all the requirements of the jurisdiction in which the tower is located;

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

(3) a statement that the county in which the telecommunication tower is located has a population of less than 250,000 according to the most recent federal census; and

(4) the signature of the chief executive officer of the county or municipality in which the telecommunication tower is located.

In addition, the purchaser must provide to the retailer written certification that the building materials will be incorporated into the telecommunication tower identified in the Certificate of Eligibility and contain the purchaser's signature and date of purchase.

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

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