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Executive Committee
Filed: 4/17/2007
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09500HB0811ham001 |
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LRB095 10788 BDD 33744 a |
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1 |
| AMENDMENT TO HOUSE BILL 811
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| AMENDMENT NO. ______. Amend House Bill 811 by replacing |
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| everything after the enacting clause with the following:
|
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| "Section 5. The Use Tax Act is amended by changing Section |
5 |
| 3-61 as follows:
|
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| (35 ILCS 105/3-61)
|
7 |
| Sec. 3-61. Motor vehicles; trailers; use as rolling stock |
8 |
| definition. |
9 |
| (a) Through
June 30, 2003, "use
as
rolling stock moving
in
|
10 |
| interstate commerce" in subsections (b) and (c) of Section 3-55 |
11 |
| means for motor
vehicles, as defined in Section 1-146 of the |
12 |
| Illinois Vehicle Code, and
trailers, as defined in Section |
13 |
| 1-209 of the Illinois Vehicle Code, when on 15
or more |
14 |
| occasions in a 12-month period the motor vehicle and trailer |
15 |
| has
carried
persons or
property for hire in interstate |
16 |
| commerce, even just between points in Illinois,
if the motor |
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|
09500HB0811ham001 |
- 2 - |
LRB095 10788 BDD 33744 a |
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|
1 |
| vehicle and trailer transports persons whose journeys or |
2 |
| property
whose shipments originate or terminate outside |
3 |
| Illinois. This definition
applies to all property purchased for |
4 |
| the purpose of being
attached to those motor vehicles or |
5 |
| trailers as a part thereof.
|
6 |
| (b) On and after July 1, 2003 and through June 30, 2004, |
7 |
| "use as rolling stock moving in interstate
commerce" in
|
8 |
| paragraphs (b) and (c) of Section 3-55 occurs for motor |
9 |
| vehicles, as defined in
Section 1-146 of the Illinois Vehicle |
10 |
| Code, when during a 12-month period
the
rolling stock has |
11 |
| carried persons or property for hire in interstate commerce
for |
12 |
| 51% of
its total trips and transports persons whose journeys or |
13 |
| property whose
shipments
originate or terminate outside |
14 |
| Illinois. Trips that are only between points in
Illinois shall
|
15 |
| not be counted as interstate trips when calculating whether the |
16 |
| tangible
personal property
qualifies for the exemption but such |
17 |
| trips shall be included in total trips
taken.
|
18 |
| (c) Beginning July 1, 2004, "use as rolling stock moving in |
19 |
| interstate commerce" in paragraphs (b) and (c) of Section 3-55 |
20 |
| occurs for motor vehicles, as defined in Section 1-146 of the |
21 |
| Illinois Vehicle Code, when during a 12-month period the |
22 |
| rolling stock has carried persons or property for hire in |
23 |
| interstate commerce for greater than 50% of its total trips for |
24 |
| that period or for greater than 50% of its total miles for that |
25 |
| period. The person claiming the exemption shall make an |
26 |
| election at the time of purchase to use either the trips or |
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|
09500HB0811ham001 |
- 3 - |
LRB095 10788 BDD 33744 a |
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|
1 |
| mileage method. Persons who purchased motor vehicles prior to |
2 |
| July 1, 2004 shall make an election to use either the trips or |
3 |
| mileage method and document that election in their books and |
4 |
| records. If no election is made under this subsection to use |
5 |
| the trips or mileage method, the person shall be deemed to have |
6 |
| chosen the mileage method. Any election to use either the trips |
7 |
| or mileage method will remain in effect for that motor vehicle |
8 |
| for any period for which the Department may issue a notice of |
9 |
| tax liability under this Act. |
10 |
| For purposes of determining qualifying trips or miles, |
11 |
| motor vehicles that carry persons or property for hire, even |
12 |
| just between points in Illinois, will be considered used for |
13 |
| hire in interstate commerce if the motor vehicle transports |
14 |
| persons whose journeys or property whose shipments originate or |
15 |
| terminate outside Illinois. The exemption for motor vehicles |
16 |
| used as rolling stock moving in interstate commerce may be |
17 |
| claimed only for motor vehicles whose gross vehicle weight |
18 |
| rating exceeds 16,000 pounds. This definition applies to all |
19 |
| property purchased for the purpose of being attached to those |
20 |
| motor vehicles as a part thereof. |
21 |
| (d) Beginning July 1, 2004, "use as rolling stock moving in |
22 |
| interstate commerce" in paragraphs (b) and (c) of Section 3-55 |
23 |
| occurs for trailers, as defined in Section 1-209 of the |
24 |
| Illinois Vehicle Code, semitrailers as defined in Section 1-187 |
25 |
| of the Illinois Vehicle Code, and pole trailers as defined in |
26 |
| Section 1-161 of the Illinois Vehicle Code, when during a |
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|
09500HB0811ham001 |
- 4 - |
LRB095 10788 BDD 33744 a |
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|
1 |
| 12-month period the rolling stock has carried persons or |
2 |
| property for hire in interstate commerce for greater than 50% |
3 |
| of its total trips for that period or for greater than 50% of |
4 |
| its total miles for that period. The person claiming the |
5 |
| exemption for a trailer or trailers that will not be dedicated |
6 |
| to a motor vehicle or group of motor vehicles shall make an |
7 |
| election at the time of purchase to use either the trips or |
8 |
| mileage method. Persons who purchased trailers prior to July 1, |
9 |
| 2004 that are not dedicated to a motor vehicle or group of |
10 |
| motor vehicles shall make an election to use either the trips |
11 |
| or mileage method and document that election in their books and |
12 |
| records. If no election is made under this subsection to use |
13 |
| the trips or mileage method, the person shall be deemed to have |
14 |
| chosen the mileage method. Any election to use either the trips |
15 |
| or mileage method will remain in effect for that trailer for |
16 |
| any period for which the Department may issue a notice of tax |
17 |
| liability under this Act. |
18 |
| For purposes of determining qualifying trips or miles, |
19 |
| trailers, semitrailers, or pole trailers that carry property |
20 |
| for hire, even just between points in Illinois, will be |
21 |
| considered used for hire in interstate commerce if the |
22 |
| trailers, semitrailers, or pole trailers transport property |
23 |
| whose shipments originate or terminate outside Illinois. This |
24 |
| definition applies to all property purchased for the purpose of |
25 |
| being attached to those trailers, semitrailers, or pole |
26 |
| trailers as a part thereof. In lieu of a person providing |
|
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|
09500HB0811ham001 |
- 5 - |
LRB095 10788 BDD 33744 a |
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|
1 |
| documentation regarding the qualifying use of each individual |
2 |
| trailer, semitrailer, or pole trailer, that person may document |
3 |
| such qualifying use by providing documentation of the |
4 |
| following: |
5 |
| (1) If a trailer, semitrailer, or pole trailer is |
6 |
| dedicated to a motor vehicle that qualifies as rolling |
7 |
| stock moving in interstate commerce under subsection (c) of |
8 |
| this Section, then that trailer, semitrailer, or pole |
9 |
| trailer qualifies as rolling stock moving in interstate |
10 |
| commerce under this subsection. |
11 |
| (2) If a trailer, semitrailer, or pole trailer is |
12 |
| dedicated to a group of motor vehicles that all qualify as |
13 |
| rolling stock moving in interstate commerce under |
14 |
| subsection (c) of this Section, then that trailer, |
15 |
| semitrailer, or pole trailer qualifies as rolling stock |
16 |
| moving in interstate commerce under this subsection. |
17 |
| (3) If one or more trailers, semitrailers, or pole |
18 |
| trailers are dedicated to a group of motor vehicles and not |
19 |
| all of those motor vehicles in that group qualify as |
20 |
| rolling stock moving in interstate commerce under |
21 |
| subsection (c) of this Section, then the percentage of |
22 |
| those trailers, semitrailers, or pole trailers that |
23 |
| qualifies as rolling stock moving in interstate commerce |
24 |
| under this subsection is equal to the percentage of those |
25 |
| motor vehicles in that group that qualify as rolling stock |
26 |
| moving in interstate commerce under subsection (c) of this |
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|
09500HB0811ham001 |
- 6 - |
LRB095 10788 BDD 33744 a |
|
|
1 |
| Section to which those trailers, semitrailers, or pole |
2 |
| trailers are dedicated. However, to determine the |
3 |
| qualification for the exemption provided under this item |
4 |
| (3), the mathematical application of the qualifying |
5 |
| percentage to one or more trailers, semitrailers, or pole |
6 |
| trailers under this subpart shall not be allowed as to any |
7 |
| fraction of a trailer, semitrailer, or pole trailer.
|
8 |
| (Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
|
9 |
| Section 10. The Service Use Tax Act is amended by changing |
10 |
| Section 3-51 as follows:
|
11 |
| (35 ILCS 110/3-51)
|
12 |
| Sec. 3-51. Motor vehicles; trailers; use as rolling stock |
13 |
| definition. |
14 |
| (a) Through
June 30, 2003, "use
as
rolling stock moving
in
|
15 |
| interstate commerce" in subsection (b) of Section 3-45 means |
16 |
| for motor
vehicles, as defined in Section 1-46 of the Illinois |
17 |
| Vehicle Code, and
trailers, as defined in Section 1-209 of the |
18 |
| Illinois Vehicle Code, when on 15
or more
occasions in a |
19 |
| 12-month period the motor vehicle and trailer has carried
|
20 |
| persons
or property
for hire in interstate commerce, even just |
21 |
| between points in Illinois, if the
motor vehicle and trailer |
22 |
| transports persons whose journeys or property
whose shipments |
23 |
| originate or terminate outside Illinois. This definition
|
24 |
| applies to all property purchased for the purpose of being |
|
|
|
09500HB0811ham001 |
- 7 - |
LRB095 10788 BDD 33744 a |
|
|
1 |
| attached to those
motor
vehicles or trailers as a part thereof.
|
2 |
| (b) On and after July 1, 2003 and through June 30, 2004, |
3 |
| "use as rolling stock moving in interstate
commerce" in
|
4 |
| paragraphs (4) and (4a) of the definition of "sale of service" |
5 |
| in Section 2
and subsection (b) of Section 3-45 occurs for |
6 |
| motor vehicles, as defined in
Section 1-146 of the Illinois |
7 |
| Vehicle Code, when
during a 12-month period the rolling stock |
8 |
| has carried persons or property for
hire in
interstate commerce |
9 |
| for 51% of its total trips and transports persons whose
|
10 |
| journeys or
property whose shipments originate or terminate |
11 |
| outside Illinois. Trips that
are only
between points in |
12 |
| Illinois shall not be counted as interstate trips when
|
13 |
| calculating whether
the tangible personal property qualifies |
14 |
| for the exemption but such trips shall
be included
in total |
15 |
| trips taken.
|
16 |
| (c) Beginning July 1, 2004, "use as rolling stock moving in |
17 |
| interstate commerce" in paragraphs (4) and (4a) of the |
18 |
| definition of "sale of service" in Section 2 and subsection (b) |
19 |
| of Section 3-45 occurs for motor vehicles, as defined in |
20 |
| Section 1-146 of the Illinois Vehicle Code, when during a |
21 |
| 12-month period the rolling stock has carried persons or |
22 |
| property for hire in interstate commerce for greater than 50% |
23 |
| of its total trips for that period or for greater than 50% of |
24 |
| its total miles for that period. The person claiming the |
25 |
| exemption shall make an election at the time of purchase to use |
26 |
| either the trips or mileage method. Persons who purchased motor |
|
|
|
09500HB0811ham001 |
- 8 - |
LRB095 10788 BDD 33744 a |
|
|
1 |
| vehicles prior to July 1, 2004 shall make an election to use |
2 |
| either the trips or mileage method and document that election |
3 |
| in their books and records. If no election is made under this |
4 |
| subsection to use the trips or mileage method, the person shall |
5 |
| be deemed to have chosen the mileage method. Any election to |
6 |
| use either the trips or mileage method will remain in effect |
7 |
| for that motor vehicle for any period for which the Department |
8 |
| may issue a notice of tax liability under this Act. |
9 |
| For purposes of determining qualifying trips or miles, |
10 |
| motor vehicles that carry persons or property for hire, even |
11 |
| just between points in Illinois, will be considered used for |
12 |
| hire in interstate commerce if the motor vehicle transports |
13 |
| persons whose journeys or property whose shipments originate or |
14 |
| terminate outside Illinois. The exemption for motor vehicles |
15 |
| used as rolling stock moving in interstate commerce may be |
16 |
| claimed only for motor vehicles whose gross vehicle weight |
17 |
| rating exceeds 16,000 pounds. This definition applies to all |
18 |
| property purchased for the purpose of being attached to those |
19 |
| motor vehicles as a part thereof. |
20 |
| (d) Beginning July 1, 2004, "use as rolling stock moving in |
21 |
| interstate commerce" in paragraphs (4) and (4a) of the |
22 |
| definition of "sale of service" in Section 2 and subsection (b) |
23 |
| of Section 3-45 occurs for trailers, as defined in Section |
24 |
| 1-209 of the Illinois Vehicle Code, semitrailers as defined in |
25 |
| Section 1-187 of the Illinois Vehicle Code, and pole trailers |
26 |
| as defined in Section 1-161 of the Illinois Vehicle Code, when |
|
|
|
09500HB0811ham001 |
- 9 - |
LRB095 10788 BDD 33744 a |
|
|
1 |
| during a 12-month period the rolling stock has carried persons |
2 |
| or property for hire in interstate commerce for greater than |
3 |
| 50% of its total trips for that period or for greater than 50% |
4 |
| of its total miles for that period. The person claiming the |
5 |
| exemption for a trailer or trailers that will not be dedicated |
6 |
| to a motor vehicle or group of motor vehicles shall make an |
7 |
| election at the time of purchase to use either the trips or |
8 |
| mileage method. Persons who purchased trailers prior to July 1, |
9 |
| 2004 that are not dedicated to a motor vehicle or group of |
10 |
| motor vehicles shall make an election to use either the trips |
11 |
| or mileage method and document that election in their books and |
12 |
| records. If no election is made under this subsection to use |
13 |
| the trips or mileage method, the person shall be deemed to have |
14 |
| chosen the mileage method. Any election to use either the trips |
15 |
| or mileage method will remain in effect for that trailer for |
16 |
| any period for which the Department may issue a notice of tax |
17 |
| liability under this Act. |
18 |
| For purposes of determining qualifying trips or miles, |
19 |
| trailers, semitrailers, or pole trailers that carry property |
20 |
| for hire, even just between points in Illinois, will be |
21 |
| considered used for hire in interstate commerce if the |
22 |
| trailers, semitrailers, or pole trailers transport property |
23 |
| whose shipments originate or terminate outside Illinois. This |
24 |
| definition applies to all property purchased for the purpose of |
25 |
| being attached to those trailers, semitrailers, or pole |
26 |
| trailers as a part thereof. In lieu of a person providing |
|
|
|
09500HB0811ham001 |
- 10 - |
LRB095 10788 BDD 33744 a |
|
|
1 |
| documentation regarding the qualifying use of each individual |
2 |
| trailer, semitrailer, or pole trailer, that person may document |
3 |
| such qualifying use by providing documentation of the |
4 |
| following: |
5 |
| (1) If a trailer, semitrailer, or pole trailer is |
6 |
| dedicated to a motor vehicle that qualifies as rolling |
7 |
| stock moving in interstate commerce under subsection (c) of |
8 |
| this Section, then that trailer, semitrailer, or pole |
9 |
| trailer qualifies as rolling stock moving in interstate |
10 |
| commerce under this subsection. |
11 |
| (2) If a trailer, semitrailer, or pole trailer is |
12 |
| dedicated to a group of motor vehicles that all qualify as |
13 |
| rolling stock moving in interstate commerce under |
14 |
| subsection (c) of this Section, then that trailer, |
15 |
| semitrailer, or pole trailer qualifies as rolling stock |
16 |
| moving in interstate commerce under this subsection. |
17 |
| (3) If one or more trailers, semitrailers, or pole |
18 |
| trailers are dedicated to a group of motor vehicles and not |
19 |
| all of those motor vehicles in that group qualify as |
20 |
| rolling stock moving in interstate commerce under |
21 |
| subsection (c) of this Section, then the percentage of |
22 |
| those trailers, semitrailers, or pole trailers that |
23 |
| qualifies as rolling stock moving in interstate commerce |
24 |
| under this subsection is equal to the percentage of those |
25 |
| motor vehicles in that group that qualify as rolling stock |
26 |
| moving in interstate commerce under subsection (c) of this |
|
|
|
09500HB0811ham001 |
- 11 - |
LRB095 10788 BDD 33744 a |
|
|
1 |
| Section to which those trailers, semitrailers, or pole |
2 |
| trailers are dedicated. However, to determine the |
3 |
| qualification for the exemption provided under this item |
4 |
| (3), the mathematical application of the qualifying |
5 |
| percentage to one or more trailers, semitrailers, or pole |
6 |
| trailers under this subpart shall not be allowed as to any |
7 |
| fraction of a trailer, semitrailer, or pole trailer.
|
8 |
| (Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
|
9 |
| Section 15. The Service Occupation Tax Act is amended by |
10 |
| changing Section 2d as follows:
|
11 |
| (35 ILCS 115/2d)
|
12 |
| Sec. 2d. Motor vehicles; trailers; use as rolling stock |
13 |
| definition. |
14 |
| (a) Through June
30, 2003, "use as
rolling stock moving in
|
15 |
| interstate commerce" in subsections (d) and (d-1) of the |
16 |
| definition of "sale of
service" in Section 2 means for motor |
17 |
| vehicles, as defined in Section 1-146 of
the Illinois Vehicle |
18 |
| Code, and trailers, as defined in Section 1-209 of the
Illinois |
19 |
| Vehicle Code, when on 15 or more occasions in a 12-month period |
20 |
| the
motor vehicle and trailer has carried persons or property |
21 |
| for hire in
interstate commerce, even just between points in |
22 |
| Illinois, if the motor vehicle
and trailer transports persons |
23 |
| whose journeys or property whose shipments
originate or |
24 |
| terminate outside Illinois.
This definition applies to all |
|
|
|
09500HB0811ham001 |
- 12 - |
LRB095 10788 BDD 33744 a |
|
|
1 |
| property purchased for the purpose of being
attached to those |
2 |
| motor vehicles or trailers as a part thereof.
|
3 |
| (b) On and after July 1, 2003 and through June 30, 2004, |
4 |
| "use as rolling stock moving in interstate
commerce" in
|
5 |
| paragraphs (d) and (d-1) of the definition of "sale of service" |
6 |
| in
Section 2 occurs for motor vehicles, as defined in Section |
7 |
| 1-146 of the
Illinois Vehicle Code,
when during a 12-month |
8 |
| period the rolling stock has carried persons or property
for |
9 |
| hire
in interstate commerce for 51% of its total trips and |
10 |
| transports persons whose
journeys or
property whose shipments |
11 |
| originate or terminate outside Illinois. Trips that
are only
|
12 |
| between points in Illinois will not be counted as interstate |
13 |
| trips when
calculating whether
the tangible personal property |
14 |
| qualifies for the exemption but such trips will
be included
in |
15 |
| total trips taken.
|
16 |
| (c) Beginning July 1, 2004, "use as rolling stock moving in |
17 |
| interstate commerce" in paragraphs (d) and (d-1) of the |
18 |
| definition of "sale of service" in Section 2 occurs for motor |
19 |
| vehicles, as defined in Section 1-146 of the Illinois Vehicle |
20 |
| Code, when during a 12-month period the rolling stock has |
21 |
| carried persons or property for hire in interstate commerce for |
22 |
| greater than 50% of its total trips for that period or for |
23 |
| greater than 50% of its total miles for that period. The person |
24 |
| claiming the exemption shall make an election at the time of |
25 |
| purchase to use either the trips or mileage method. Persons who |
26 |
| purchased motor vehicles prior to July 1, 2004 shall make an |
|
|
|
09500HB0811ham001 |
- 13 - |
LRB095 10788 BDD 33744 a |
|
|
1 |
| election to use either the trips or mileage method and document |
2 |
| that election in their books and records. If no election is |
3 |
| made under this subsection to use the trips or mileage method, |
4 |
| the person shall be deemed to have chosen the mileage method. |
5 |
| Any election to use either the trips or mileage method will |
6 |
| remain in effect for that motor vehicle for any period for |
7 |
| which the Department may issue a notice of tax liability under |
8 |
| this Act. |
9 |
| For purposes of determining qualifying trips or miles, |
10 |
| motor vehicles that carry persons or property for hire, even |
11 |
| just between points in Illinois, will be considered used for |
12 |
| hire in interstate commerce if the motor vehicle transports |
13 |
| persons whose journeys or property whose shipments originate or |
14 |
| terminate outside Illinois. The exemption for motor vehicles |
15 |
| used as rolling stock moving in interstate commerce may be |
16 |
| claimed only for motor vehicles whose gross vehicle weight |
17 |
| rating exceeds 16,000 pounds. This definition applies to all |
18 |
| property purchased for the purpose of being attached to those |
19 |
| motor vehicles as a part thereof. |
20 |
| (d) Beginning July 1, 2004, "use as rolling stock moving in |
21 |
| interstate commerce" in paragraphs (d) and (d-1) of the |
22 |
| definition of "sale of service" in Section 2 occurs for |
23 |
| trailers, as defined in Section 1-209 of the Illinois Vehicle |
24 |
| Code, semitrailers as defined in Section 1-187 of the Illinois |
25 |
| Vehicle Code, and pole trailers as defined in Section 1-161 of |
26 |
| the Illinois Vehicle Code, when during a 12-month period the |
|
|
|
09500HB0811ham001 |
- 14 - |
LRB095 10788 BDD 33744 a |
|
|
1 |
| rolling stock has carried persons or property for hire in |
2 |
| interstate commerce for greater than 50% of its total trips for |
3 |
| that period or for greater than 50% of its total miles for that |
4 |
| period. The person claiming the exemption for a trailer or |
5 |
| trailers that will not be dedicated to a motor vehicle or group |
6 |
| of motor vehicles shall make an election at the time of |
7 |
| purchase to use either the trips or mileage method. Persons who |
8 |
| purchased trailers prior to July 1, 2004 that are not dedicated |
9 |
| to a motor vehicle or group of motor vehicles shall make an |
10 |
| election to use either the trips or mileage method and document |
11 |
| that election in their books and records. If no election is |
12 |
| made under this subsection to use the trips or mileage method, |
13 |
| the person shall be deemed to have chosen the mileage method. |
14 |
| Any election to use either the trips or mileage method will |
15 |
| remain in effect for that trailer for any period for which the |
16 |
| Department may issue a notice of tax liability under this Act. |
17 |
| For purposes of determining qualifying trips or miles, |
18 |
| trailers, semitrailers, or pole trailers that carry property |
19 |
| for hire, even just between points in Illinois, will be |
20 |
| considered used for hire in interstate commerce if the |
21 |
| trailers, semitrailers, or pole trailers transport property |
22 |
| whose shipments originate or terminate outside Illinois. This |
23 |
| definition applies to all property purchased for the purpose of |
24 |
| being attached to those trailers, semitrailers, or pole |
25 |
| trailers as a part thereof. In lieu of a person providing |
26 |
| documentation regarding the qualifying use of each individual |
|
|
|
09500HB0811ham001 |
- 15 - |
LRB095 10788 BDD 33744 a |
|
|
1 |
| trailer, semitrailer, or pole trailer, that person may document |
2 |
| such qualifying use by providing documentation of the |
3 |
| following: |
4 |
| (1) If a trailer, semitrailer, or pole trailer is |
5 |
| dedicated to a motor vehicle that qualifies as rolling |
6 |
| stock moving in interstate commerce under subsection (c) of |
7 |
| this Section, then that trailer, semitrailer, or pole |
8 |
| trailer qualifies as rolling stock moving in interstate |
9 |
| commerce under this subsection. |
10 |
| (2) If a trailer, semitrailer, or pole trailer is |
11 |
| dedicated to a group of motor vehicles that all qualify as |
12 |
| rolling stock moving in interstate commerce under |
13 |
| subsection (c) of this Section, then that trailer, |
14 |
| semitrailer, or pole trailer qualifies as rolling stock |
15 |
| moving in interstate commerce under this subsection. |
16 |
| (3) If one or more trailers, semitrailers, or pole |
17 |
| trailers are dedicated to a group of motor vehicles and not |
18 |
| all of those motor vehicles in that group qualify as |
19 |
| rolling stock moving in interstate commerce under |
20 |
| subsection (c) of this Section, then the percentage of |
21 |
| those trailers, semitrailers, or pole trailers that |
22 |
| qualifies as rolling stock moving in interstate commerce |
23 |
| under this subsection is equal to the percentage of those |
24 |
| motor vehicles in that group that qualify as rolling stock |
25 |
| moving in interstate commerce under subsection (c) of this |
26 |
| Section to which those trailers, semitrailers, or pole |
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09500HB0811ham001 |
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LRB095 10788 BDD 33744 a |
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| trailers are dedicated. However, to determine the |
2 |
| qualification for the exemption provided under this item |
3 |
| (3), the mathematical application of the qualifying |
4 |
| percentage to one or more trailers, semitrailers, or pole |
5 |
| trailers under this subpart shall not be allowed as to any |
6 |
| fraction of a trailer, semitrailer, or pole trailer.
|
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| (Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
|
8 |
| Section 20. The Retailers' Occupation Tax Act is amended by |
9 |
| changing Section 2-51 as follows:
|
10 |
| (35 ILCS 120/2-51)
|
11 |
| Sec. 2-51. Motor vehicles; trailers; use as rolling stock |
12 |
| definition. |
13 |
| (a) Through
June 30, 2003, "use
as
rolling stock moving
in
|
14 |
| interstate commerce" in
paragraphs (12) and (13) of Section 2-5 |
15 |
| means for motor vehicles, as defined in
Section 1-146 of the |
16 |
| Illinois Vehicle Code, and trailers, as defined in Section
|
17 |
| 1-209 of the Illinois Vehicle Code, when on 15 or more |
18 |
| occasions in a
12-month period the motor vehicle and trailer |
19 |
| has carried persons or property
for
hire in
interstate |
20 |
| commerce, even just between points in Illinois, if the motor |
21 |
| vehicle
and trailer transports persons whose journeys or |
22 |
| property whose shipments
originate or terminate outside |
23 |
| Illinois. This
definition applies to all
property purchased for |
24 |
| the purpose of being attached to those motor vehicles or
|
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09500HB0811ham001 |
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LRB095 10788 BDD 33744 a |
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| trailers as a part thereof.
|
2 |
| (b) On and after July 1, 2003 and through June 30, 2004, |
3 |
| "use as rolling stock moving in interstate
commerce" in
|
4 |
| paragraphs (12) and (13) of Section 2-5 occurs for motor |
5 |
| vehicles, as defined
in Section 1-146 of the Illinois Vehicle |
6 |
| Code, when during a 12-month
period the
rolling stock has |
7 |
| carried persons or property for hire in interstate commerce
for |
8 |
| 51% of
its total trips and transports persons whose journeys or |
9 |
| property whose
shipments
originate or terminate outside |
10 |
| Illinois. Trips that are only between points in
Illinois shall
|
11 |
| not be counted as interstate trips when calculating whether the |
12 |
| tangible
personal property
qualifies for the exemption but such |
13 |
| trips shall be included in total trips
taken.
|
14 |
| (c) Beginning July 1, 2004, "use as rolling stock moving in |
15 |
| interstate commerce" in paragraphs (12) and (13) of Section 2-5 |
16 |
| occurs for motor vehicles, as defined in Section 1-146 of the |
17 |
| Illinois Vehicle Code, when during a 12-month period the |
18 |
| rolling stock has carried persons or property for hire in |
19 |
| interstate commerce for greater than 50% of its total trips for |
20 |
| that period or for greater than 50% of its total miles for that |
21 |
| period. The person claiming the exemption shall make an |
22 |
| election at the time of purchase to use either the trips or |
23 |
| mileage method. Persons who purchased motor vehicles prior to |
24 |
| July 1, 2004 shall make an election to use either the trips or |
25 |
| mileage method and document that election in their books and |
26 |
| records. If no election is made under this subsection to use |
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09500HB0811ham001 |
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LRB095 10788 BDD 33744 a |
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| the trips or mileage method, the person shall be deemed to have |
2 |
| chosen the mileage method. Any election to use either the trips |
3 |
| or mileage method will remain in effect for that motor vehicle |
4 |
| for any period for which the Department may issue a notice of |
5 |
| tax liability under this Act. |
6 |
| For purposes of determining qualifying trips or miles, |
7 |
| motor vehicles that carry persons or property for hire, even |
8 |
| just between points in Illinois, will be considered used for |
9 |
| hire in interstate commerce if the motor vehicle transports |
10 |
| persons whose journeys or property whose shipments originate or |
11 |
| terminate outside Illinois. The exemption for motor vehicles |
12 |
| used as rolling stock moving in interstate commerce may be |
13 |
| claimed only for motor vehicles whose gross vehicle weight |
14 |
| rating exceeds 16,000 pounds. This definition applies to all |
15 |
| property purchased for the purpose of being attached to those |
16 |
| motor vehicles as a part thereof. |
17 |
| (d) Beginning July 1, 2004, "use as rolling stock moving in |
18 |
| interstate commerce" in paragraphs (12) and (13) of Section 2-5 |
19 |
| occurs for trailers, as defined in Section 1-209 of the |
20 |
| Illinois Vehicle Code, semitrailers as defined in Section 1-187 |
21 |
| of the Illinois Vehicle Code, and pole trailers as defined in |
22 |
| Section 1-161 of the Illinois Vehicle Code, when during a |
23 |
| 12-month period the rolling stock has carried persons or |
24 |
| property for hire in interstate commerce for greater than 50% |
25 |
| of its total trips for that period or for greater than 50% of |
26 |
| its total miles for that period. The person claiming the |
|
|
|
09500HB0811ham001 |
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LRB095 10788 BDD 33744 a |
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|
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| exemption for a trailer or trailers that will not be dedicated |
2 |
| to a motor vehicle or group of motor vehicles shall make an |
3 |
| election at the time of purchase to use either the trips or |
4 |
| mileage method. Persons who purchased trailers prior to July 1, |
5 |
| 2004 that are not dedicated to a motor vehicle or group of |
6 |
| motor vehicles shall make an election to use either the trips |
7 |
| or mileage method and document that election in their books and |
8 |
| records. If no election is made under this subsection to use |
9 |
| the trips or mileage method, the person shall be deemed to have |
10 |
| chosen the mileage method. Any election to use either the trips |
11 |
| or mileage method will remain in effect for that trailer for |
12 |
| any period for which the Department may issue a notice of tax |
13 |
| liability under this Act. |
14 |
| For purposes of determining qualifying trips or miles, |
15 |
| trailers, semitrailers, or pole trailers that carry property |
16 |
| for hire, even just between points in Illinois, will be |
17 |
| considered used for hire in interstate commerce if the |
18 |
| trailers, semitrailers, or pole trailers transport property |
19 |
| whose shipments originate or terminate outside Illinois. This |
20 |
| definition applies to all property purchased for the purpose of |
21 |
| being attached to those trailers, semitrailers, or pole |
22 |
| trailers as a part thereof. In lieu of a person providing |
23 |
| documentation regarding the qualifying use of each individual |
24 |
| trailer, semitrailer, or pole trailer, that person may document |
25 |
| such qualifying use by providing documentation of the |
26 |
| following: |
|
|
|
09500HB0811ham001 |
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LRB095 10788 BDD 33744 a |
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|
1 |
| (1) If a trailer, semitrailer, or pole trailer is |
2 |
| dedicated to a motor vehicle that qualifies as rolling |
3 |
| stock moving in interstate commerce under subsection (c) of |
4 |
| this Section, then that trailer, semitrailer, or pole |
5 |
| trailer qualifies as rolling stock moving in interstate |
6 |
| commerce under this subsection. |
7 |
| (2) If a trailer, semitrailer, or pole trailer is |
8 |
| dedicated to a group of motor vehicles that all qualify as |
9 |
| rolling stock moving in interstate commerce under |
10 |
| subsection (c) of this Section, then that trailer, |
11 |
| semitrailer, or pole trailer qualifies as rolling stock |
12 |
| moving in interstate commerce under this subsection. |
13 |
| (3) If one or more trailers, semitrailers, or pole |
14 |
| trailers are dedicated to a group of motor vehicles and not |
15 |
| all of those motor vehicles in that group qualify as |
16 |
| rolling stock moving in interstate commerce under |
17 |
| subsection (c) of this Section, then the percentage of |
18 |
| those trailers, semitrailers, or pole trailers that |
19 |
| qualifies as rolling stock moving in interstate commerce |
20 |
| under this subsection is equal to the percentage of those |
21 |
| motor vehicles in that group that qualify as rolling stock |
22 |
| moving in interstate commerce under subsection (c) of this |
23 |
| Section to which those trailers, semitrailers, or pole |
24 |
| trailers are dedicated. However, to determine the |
25 |
| qualification for the exemption provided under this item |
26 |
| (3), the mathematical application of the qualifying |
|
|
|
09500HB0811ham001 |
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LRB095 10788 BDD 33744 a |
|
|
1 |
| percentage to one or more trailers, semitrailers, or pole |
2 |
| trailers under this subpart shall not be allowed as to any |
3 |
| fraction of a trailer, semitrailer, or pole trailer.
|
4 |
| (Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
|
5 |
| Section 99. Effective date. This Act takes effect upon |
6 |
| becoming law.".
|