- Published: Friday, May 17, 2013 08:58 AM
SPRINGFIELD – State Senator Andy Manar (D – Bunker Hill) is cleaning up inconsistencies in the tax code that negatively impact Illinois’ coal industry. House Bill 2918 brings uniformity to the sales tax exemption on certain types of coal exploration equipment. This important exemption helps to encourage the growing industry of coal exploration in Illinois.
“The Illinois coal industry is a tremendous economic engine for downstate Illinois,” said Manar. “We need to be encouraging industries like this one to grow and create jobs here in Illinois, not impeding them with irregularities in our tax code.”
When a long-standing sales tax exemption for coal and aggregate exploration equipment expired in 2003, specific pieces of equipment were no longer covered. The General Assembly renewed this exemption in 2012, but there were inconsistencies due to the gap in coverage. HB 2918 addresses the gap, applying the sales tax exemption retroactively but not at any additional expense to the state. The Department of Revenue will not issue refunds but will only eliminate any outstanding balances that resulted from this inconsistency.
“If making a few simple corrections to our tax code helps reduce confusion and improve the landscape for this industry in Illinois, it’s a no-brainer,” said Manar. “Providing consistency and stability is important to encourage industry development.”