|
|||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||
1 | AN ACT concerning revenue.
| ||||||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||||||
4 | Section 5. The Use Tax Act is amended by changing Section | ||||||||||||||||||||||||||||||
5 | 3-61 as follows:
| ||||||||||||||||||||||||||||||
6 | (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 | ||||||||||||||||||||||||||||||
17 | vehicle and trailer transports persons whose journeys or | ||||||||||||||||||||||||||||||
18 | property
whose shipments originate or terminate outside | ||||||||||||||||||||||||||||||
19 | Illinois. This definition
applies to all property purchased for | ||||||||||||||||||||||||||||||
20 | the purpose of being
attached to those motor vehicles or | ||||||||||||||||||||||||||||||
21 | trailers as a part thereof.
| ||||||||||||||||||||||||||||||
22 | (b) On and after July 1, 2003 and through June 30, 2004, | ||||||||||||||||||||||||||||||
23 | "use as rolling stock moving in interstate
commerce" in
|
| |||||||
| |||||||
1 | paragraphs (b) and (c) of Section 3-55 occurs for motor | ||||||
2 | vehicles, as defined in
Section 1-146 of the Illinois Vehicle | ||||||
3 | Code, when during a 12-month period
the
rolling stock has | ||||||
4 | carried persons or property for hire in interstate commerce
for | ||||||
5 | 51% of
its total trips and transports persons whose journeys or | ||||||
6 | property whose
shipments
originate or terminate outside | ||||||
7 | Illinois. Trips that are only between points in
Illinois shall
| ||||||
8 | not be counted as interstate trips when calculating whether the | ||||||
9 | tangible
personal property
qualifies for the exemption but such | ||||||
10 | trips shall be included in total trips
taken.
| ||||||
11 | (c) Beginning July 1, 2004, "use as rolling stock moving in | ||||||
12 | interstate commerce" in paragraphs (b) and (c) of Section 3-55 | ||||||
13 | occurs for motor vehicles, as defined in Section 1-146 of the | ||||||
14 | Illinois Vehicle Code, when during a 12-month period the | ||||||
15 | rolling stock has carried persons or property for hire in | ||||||
16 | interstate commerce for greater than 50% of its total trips for | ||||||
17 | that period or for greater than 50% of its total miles for that | ||||||
18 | period. The person claiming the exemption shall make an | ||||||
19 | election at the time of purchase to use either the trips or | ||||||
20 | mileage method. Persons who purchased motor vehicles prior to | ||||||
21 | July 1, 2004 shall make an election to use either the trips or | ||||||
22 | mileage method and document that election in their books and | ||||||
23 | records. If no election is made under this subsection to use | ||||||
24 | the trips or mileage method, the person shall be deemed to have | ||||||
25 | chosen the mileage method. Any election to use either the trips | ||||||
26 | or mileage method will remain in effect for that motor vehicle |
| |||||||
| |||||||
1 | for any period for which the Department may issue a notice of | ||||||
2 | tax liability under this Act. | ||||||
3 | For purposes of determining qualifying trips or miles, | ||||||
4 | motor vehicles that carry persons or property for hire, even | ||||||
5 | just between points in Illinois, will be considered used for | ||||||
6 | hire in interstate commerce if the motor vehicle transports | ||||||
7 | persons whose journeys or property whose shipments originate or | ||||||
8 | terminate outside Illinois. The exemption for motor vehicles
| ||||||
9 | used as rolling stock moving in interstate commerce may be
| ||||||
10 | claimed only for the following vehicles: (i) motor vehicles | ||||||
11 | whose gross vehicle weight
rating exceeds 16,000 pounds; and | ||||||
12 | (ii) limousines, as defined in Section 1-139.1 of the Illinois | ||||||
13 | Vehicle Code. This definition applies to all property purchased | ||||||
14 | for the purpose of being attached to those motor vehicles as a | ||||||
15 | part thereof. | ||||||
16 | (d) Beginning July 1, 2004, "use as rolling stock moving in | ||||||
17 | interstate commerce" in paragraphs (b) and (c) of Section 3-55 | ||||||
18 | occurs for trailers, as defined in Section 1-209 of the | ||||||
19 | Illinois Vehicle Code, semitrailers as defined in Section 1-187 | ||||||
20 | of the Illinois Vehicle Code, and pole trailers as defined in | ||||||
21 | Section 1-161 of the Illinois Vehicle Code, when during a | ||||||
22 | 12-month period the rolling stock has carried persons or | ||||||
23 | property for hire in interstate commerce for greater than 50% | ||||||
24 | of its total trips for that period or for greater than 50% of | ||||||
25 | its total miles for that period. The person claiming the | ||||||
26 | exemption for a trailer or trailers that will not be dedicated |
| |||||||
| |||||||
1 | to a motor vehicle or group of motor vehicles shall make an | ||||||
2 | election at the time of purchase to use either the trips or | ||||||
3 | mileage method. Persons who purchased trailers prior to July 1, | ||||||
4 | 2004 that are not dedicated to a motor vehicle or group of | ||||||
5 | motor vehicles shall make an election to use either the trips | ||||||
6 | or mileage method and document that election in their books and | ||||||
7 | records. If no election is made under this subsection to use | ||||||
8 | the trips or mileage method, the person shall be deemed to have | ||||||
9 | chosen the mileage method. Any election to use either the trips | ||||||
10 | or mileage method will remain in effect for that trailer for | ||||||
11 | any period for which the Department may issue a notice of tax | ||||||
12 | liability under this Act. | ||||||
13 | For purposes of determining qualifying trips or miles, | ||||||
14 | trailers, semitrailers, or pole trailers that carry property | ||||||
15 | for hire, even just between points in Illinois, will be | ||||||
16 | considered used for hire in interstate commerce if the | ||||||
17 | trailers, semitrailers, or pole trailers transport property | ||||||
18 | whose shipments originate or terminate outside Illinois. This | ||||||
19 | definition applies to all property purchased for the purpose of | ||||||
20 | being attached to those trailers, semitrailers, or pole | ||||||
21 | trailers as a part thereof. In lieu of a person providing | ||||||
22 | documentation regarding the qualifying use of each individual | ||||||
23 | trailer, semitrailer, or pole trailer, that person may document | ||||||
24 | such qualifying use by providing documentation of the | ||||||
25 | following: | ||||||
26 | (1) If a trailer, semitrailer, or pole trailer is |
| |||||||
| |||||||
1 | dedicated to a motor vehicle that qualifies as rolling | ||||||
2 | stock moving in interstate commerce under subsection (c) of | ||||||
3 | this Section, then that trailer, semitrailer, or pole | ||||||
4 | trailer qualifies as rolling stock moving in interstate | ||||||
5 | commerce under this subsection. | ||||||
6 | (2) If a trailer, semitrailer, or pole trailer is | ||||||
7 | dedicated to a group of motor vehicles that all qualify as | ||||||
8 | rolling stock moving in interstate commerce under | ||||||
9 | subsection (c) of this Section, then that trailer, | ||||||
10 | semitrailer, or pole trailer qualifies as rolling stock | ||||||
11 | moving in interstate commerce under this subsection. | ||||||
12 | (3) If one or more trailers, semitrailers, or pole | ||||||
13 | trailers are dedicated to a group of motor vehicles and not | ||||||
14 | all of those motor vehicles in that group qualify as | ||||||
15 | rolling stock moving in interstate commerce under | ||||||
16 | subsection (c) of this Section, then the percentage of | ||||||
17 | those trailers, semitrailers, or pole trailers that | ||||||
18 | qualifies as rolling stock moving in interstate commerce | ||||||
19 | under this subsection is equal to the percentage of those | ||||||
20 | motor vehicles in that group that qualify as rolling stock | ||||||
21 | moving in interstate commerce under subsection (c) of this | ||||||
22 | Section to which those trailers, semitrailers, or pole | ||||||
23 | trailers are dedicated. However, to determine the | ||||||
24 | qualification for the exemption provided under this item | ||||||
25 | (3), the mathematical application of the qualifying | ||||||
26 | percentage to one or more trailers, semitrailers, or pole |
| |||||||
| |||||||
1 | trailers under this subpart shall not be allowed as to any | ||||||
2 | fraction of a trailer, semitrailer, or pole trailer.
| ||||||
3 | (e) Beginning July 1, 2009, "use as rolling stock moving in | ||||||
4 | interstate commerce" in paragraphs (b) and (c) of Section 3-55 | ||||||
5 | occurs for aircraft and watercraft when during a 12-month | ||||||
6 | period the rolling stock has carried persons or property for | ||||||
7 | hire in interstate commerce for greater than 50% of its total | ||||||
8 | trips for that period or for greater than 50% of its total | ||||||
9 | miles for that period. The person claiming the exemption shall | ||||||
10 | make an election at the time of purchase to use either the | ||||||
11 | trips or mileage method. Persons who purchased aircraft or | ||||||
12 | watercraft prior to July 1, 2009 shall make an election to use | ||||||
13 | either the trips or mileage method and document that election | ||||||
14 | in their books and records. If no election is made under this | ||||||
15 | subsection to use the trips or mileage method, the person shall | ||||||
16 | be deemed to have chosen the mileage method. | ||||||
17 | (f) Any election to use either the trips or mileage method | ||||||
18 | made under the provisions of subsections (c), (d), or (e) of | ||||||
19 | this Section will remain in effect for the life of that item. | ||||||
20 | (Source: P.A. 95-528, eff. 8-28-07.)
| ||||||
21 | Section 10. The Service Use Tax Act is amended by changing | ||||||
22 | Section 3-51 as follows:
| ||||||
23 | (35 ILCS 110/3-51)
| ||||||
24 | Sec. 3-51. Motor vehicles; trailers; use as rolling stock |
| |||||||
| |||||||
1 | definition. | ||||||
2 | (a) Through
June 30, 2003, "use
as
rolling stock moving
in
| ||||||
3 | interstate commerce" in subsection (b) of Section 3-45 means | ||||||
4 | for motor
vehicles, as defined in Section 1-46 of the Illinois | ||||||
5 | Vehicle Code, and
trailers, as defined in Section 1-209 of the | ||||||
6 | Illinois Vehicle Code, when on 15
or more
occasions in a | ||||||
7 | 12-month period the motor vehicle and trailer has carried
| ||||||
8 | persons
or property
for hire in interstate commerce, even just | ||||||
9 | between points in Illinois, if the
motor vehicle and trailer | ||||||
10 | transports persons whose journeys or property
whose shipments | ||||||
11 | originate or terminate outside Illinois. This definition
| ||||||
12 | applies to all property purchased for the purpose of being | ||||||
13 | attached to those
motor
vehicles or trailers as a part thereof.
| ||||||
14 | (b) On and after July 1, 2003 and through June 30, 2004, | ||||||
15 | "use as rolling stock moving in interstate
commerce" in
| ||||||
16 | paragraphs (4) and (4a) of the definition of "sale of service" | ||||||
17 | in Section 2
and subsection (b) of Section 3-45 occurs for | ||||||
18 | motor vehicles, as defined in
Section 1-146 of the Illinois | ||||||
19 | Vehicle Code, when
during a 12-month period the rolling stock | ||||||
20 | has carried persons or property for
hire in
interstate commerce | ||||||
21 | for 51% of its total trips and transports persons whose
| ||||||
22 | journeys or
property whose shipments originate or terminate | ||||||
23 | outside Illinois. Trips that
are only
between points in | ||||||
24 | Illinois shall not be counted as interstate trips when
| ||||||
25 | calculating whether
the tangible personal property qualifies | ||||||
26 | for the exemption but such trips shall
be included
in total |
| |||||||
| |||||||
1 | trips taken.
| ||||||
2 | (c) Beginning July 1, 2004, "use as rolling stock moving in | ||||||
3 | interstate commerce" in paragraphs (4) and (4a) of the | ||||||
4 | definition of "sale of service" in Section 2 and subsection (b) | ||||||
5 | of Section 3-45 occurs for motor vehicles, as defined in | ||||||
6 | Section 1-146 of the Illinois Vehicle Code, when during a | ||||||
7 | 12-month period the rolling stock has carried persons or | ||||||
8 | property for hire in interstate commerce for greater than 50% | ||||||
9 | of its total trips for that period or for greater than 50% of | ||||||
10 | its total miles for that period. The person claiming the | ||||||
11 | exemption shall make an election at the time of purchase to use | ||||||
12 | either the trips or mileage method. Persons who purchased motor | ||||||
13 | vehicles prior to July 1, 2004 shall make an election to use | ||||||
14 | either the trips or mileage method and document that election | ||||||
15 | in their books and records. If no election is made under this | ||||||
16 | subsection to use the trips or mileage method, the person shall | ||||||
17 | be deemed to have chosen the mileage method. Any election to | ||||||
18 | use either the trips or mileage method will remain in effect | ||||||
19 | for that motor vehicle for any period for which the Department | ||||||
20 | may issue a notice of tax liability under this Act. | ||||||
21 | For purposes of determining qualifying trips or miles, | ||||||
22 | motor vehicles that carry persons or property for hire, even | ||||||
23 | just between points in Illinois, will be considered used for | ||||||
24 | hire in interstate commerce if the motor vehicle transports | ||||||
25 | persons whose journeys or property whose shipments originate or | ||||||
26 | terminate outside Illinois. The exemption for motor vehicles
|
| |||||||
| |||||||
1 | used as rolling stock moving in interstate commerce may be
| ||||||
2 | claimed only for the following vehicles: (i) motor vehicles | ||||||
3 | whose gross vehicle weight
rating exceeds 16,000 pounds; and | ||||||
4 | (ii) limousines, as defined in Section 1-139.1 of the Illinois | ||||||
5 | Vehicle Code. This definition applies to all property purchased | ||||||
6 | for the purpose of being attached to those motor vehicles as a | ||||||
7 | part thereof. | ||||||
8 | (d) Beginning July 1, 2004, "use as rolling stock moving in | ||||||
9 | interstate commerce" in paragraphs (4) and (4a) of the | ||||||
10 | definition of "sale of service" in Section 2 and subsection (b) | ||||||
11 | of Section 3-45 occurs for trailers, as defined in Section | ||||||
12 | 1-209 of the Illinois Vehicle Code, semitrailers as defined in | ||||||
13 | Section 1-187 of the Illinois Vehicle Code, and pole trailers | ||||||
14 | as defined in Section 1-161 of the Illinois Vehicle Code, when | ||||||
15 | during a 12-month period the rolling stock has carried persons | ||||||
16 | or property for hire in interstate commerce for greater than | ||||||
17 | 50% of its total trips for that period or for greater than 50% | ||||||
18 | of its total miles for that period. The person claiming the | ||||||
19 | exemption for a trailer or trailers that will not be dedicated | ||||||
20 | to a motor vehicle or group of motor vehicles shall make an | ||||||
21 | election at the time of purchase to use either the trips or | ||||||
22 | mileage method. Persons who purchased trailers prior to July 1, | ||||||
23 | 2004 that are not dedicated to a motor vehicle or group of | ||||||
24 | motor vehicles shall make an election to use either the trips | ||||||
25 | or mileage method and document that election in their books and | ||||||
26 | records. If no election is made under this subsection to use |
| |||||||
| |||||||
1 | 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 trailer for | ||||||
4 | any period for which the Department may issue a notice of tax | ||||||
5 | liability under this Act. | ||||||
6 | For purposes of determining qualifying trips or miles, | ||||||
7 | trailers, semitrailers, or pole trailers that carry property | ||||||
8 | for hire, even just between points in Illinois, will be | ||||||
9 | considered used for hire in interstate commerce if the | ||||||
10 | trailers, semitrailers, or pole trailers transport property | ||||||
11 | whose shipments originate or terminate outside Illinois. This | ||||||
12 | definition applies to all property purchased for the purpose of | ||||||
13 | being attached to those trailers, semitrailers, or pole | ||||||
14 | trailers as a part thereof. In lieu of a person providing | ||||||
15 | documentation regarding the qualifying use of each individual | ||||||
16 | trailer, semitrailer, or pole trailer, that person may document | ||||||
17 | such qualifying use by providing documentation of the | ||||||
18 | following: | ||||||
19 | (1) If a trailer, semitrailer, or pole trailer is | ||||||
20 | dedicated to a motor vehicle that qualifies as rolling | ||||||
21 | stock moving in interstate commerce under subsection (c) of | ||||||
22 | this Section, then that trailer, semitrailer, or pole | ||||||
23 | trailer qualifies as rolling stock moving in interstate | ||||||
24 | commerce under this subsection. | ||||||
25 | (2) If a trailer, semitrailer, or pole trailer is | ||||||
26 | dedicated to a group of motor vehicles that all qualify as |
| |||||||
| |||||||
1 | rolling stock moving in interstate commerce under | ||||||
2 | subsection (c) of this Section, then that trailer, | ||||||
3 | semitrailer, or pole trailer qualifies as rolling stock | ||||||
4 | moving in interstate commerce under this subsection. | ||||||
5 | (3) If one or more trailers, semitrailers, or pole | ||||||
6 | trailers are dedicated to a group of motor vehicles and not | ||||||
7 | all of those motor vehicles in that group qualify as | ||||||
8 | rolling stock moving in interstate commerce under | ||||||
9 | subsection (c) of this Section, then the percentage of | ||||||
10 | those trailers, semitrailers, or pole trailers that | ||||||
11 | qualifies as rolling stock moving in interstate commerce | ||||||
12 | under this subsection is equal to the percentage of those | ||||||
13 | motor vehicles in that group that qualify as rolling stock | ||||||
14 | moving in interstate commerce under subsection (c) of this | ||||||
15 | Section to which those trailers, semitrailers, or pole | ||||||
16 | trailers are dedicated. However, to determine the | ||||||
17 | qualification for the exemption provided under this item | ||||||
18 | (3), the mathematical application of the qualifying | ||||||
19 | percentage to one or more trailers, semitrailers, or pole | ||||||
20 | trailers under this subpart shall not be allowed as to any | ||||||
21 | fraction of a trailer, semitrailer, or pole trailer.
| ||||||
22 | (e) Beginning July 1, 2009, "use as rolling stock moving in | ||||||
23 | interstate commerce" in paragraphs (4) and (4a) of the | ||||||
24 | definition of "sale of service" in Section 2 and subsection (b) | ||||||
25 | of Section 3-45 occurs for aircraft and watercraft when during | ||||||
26 | a 12-month period the rolling stock has carried persons or |
| |||||||
| |||||||
1 | property for hire in interstate commerce for greater than 50% | ||||||
2 | of its total trips for that period or for greater than 50% of | ||||||
3 | its total miles for that period. The person claiming the | ||||||
4 | exemption shall make an election at the time of purchase to use | ||||||
5 | either the trips or mileage method. Persons who purchased | ||||||
6 | aircraft or watercraft prior to July 1, 2009 shall make an | ||||||
7 | election to use either the trips or mileage method and document | ||||||
8 | that election in their books and records. If no election is | ||||||
9 | made under this subsection to use the trips or mileage method, | ||||||
10 | the person shall be deemed to have chosen the mileage method. | ||||||
11 | (f) Any election to use either the trips or mileage method | ||||||
12 | made under the provisions of subsections (c), (d), or (e) of | ||||||
13 | this Section will remain in effect for the life of that item. | ||||||
14 | (Source: P.A. 95-528, eff. 8-28-07.)
| ||||||
15 | Section 15. The Service Occupation Tax Act is amended by | ||||||
16 | changing Section 2d as follows:
| ||||||
17 | (35 ILCS 115/2d)
| ||||||
18 | Sec. 2d. Motor vehicles; trailers; use as rolling stock | ||||||
19 | definition. | ||||||
20 | (a) Through June
30, 2003, "use as
rolling stock moving in
| ||||||
21 | interstate commerce" in subsections (d) and (d-1) of the | ||||||
22 | definition of "sale of
service" in Section 2 means for motor | ||||||
23 | vehicles, as defined in Section 1-146 of
the Illinois Vehicle | ||||||
24 | Code, and trailers, as defined in Section 1-209 of the
Illinois |
| |||||||
| |||||||
1 | Vehicle Code, when on 15 or more occasions in a 12-month period | ||||||
2 | the
motor vehicle and trailer has carried persons or property | ||||||
3 | for hire in
interstate commerce, even just between points in | ||||||
4 | Illinois, if the motor vehicle
and trailer transports persons | ||||||
5 | whose journeys or property whose shipments
originate or | ||||||
6 | terminate outside Illinois.
This definition applies to all | ||||||
7 | property purchased for the purpose of being
attached to those | ||||||
8 | motor vehicles or trailers as a part thereof.
| ||||||
9 | (b) On and after July 1, 2003 and through June 30, 2004, | ||||||
10 | "use as rolling stock moving in interstate
commerce" in
| ||||||
11 | paragraphs (d) and (d-1) of the definition of "sale of service" | ||||||
12 | in
Section 2 occurs for motor vehicles, as defined in Section | ||||||
13 | 1-146 of the
Illinois Vehicle Code,
when during a 12-month | ||||||
14 | period the rolling stock has carried persons or property
for | ||||||
15 | hire
in interstate commerce for 51% of its total trips and | ||||||
16 | transports persons whose
journeys or
property whose shipments | ||||||
17 | originate or terminate outside Illinois. Trips that
are only
| ||||||
18 | between points in Illinois will not be counted as interstate | ||||||
19 | trips when
calculating whether
the tangible personal property | ||||||
20 | qualifies for the exemption but such trips will
be included
in | ||||||
21 | total trips taken.
| ||||||
22 | (c) Beginning July 1, 2004, "use as rolling stock moving in | ||||||
23 | interstate commerce" in paragraphs (d) and (d-1) of the | ||||||
24 | definition of "sale of service" in Section 2 occurs for motor | ||||||
25 | vehicles, as defined in Section 1-146 of the Illinois Vehicle | ||||||
26 | Code, when during a 12-month period the rolling stock has |
| |||||||
| |||||||
1 | carried persons or property for hire in interstate commerce for | ||||||
2 | greater than 50% of its total trips for that period or for | ||||||
3 | greater than 50% of its total miles for that period. The person | ||||||
4 | claiming the exemption shall make an election at the time of | ||||||
5 | purchase to use either the trips or mileage method. Persons who | ||||||
6 | purchased motor vehicles prior to July 1, 2004 shall make an | ||||||
7 | election to use either the trips or mileage method and document | ||||||
8 | that election in their books and records. If no election is | ||||||
9 | made under this subsection to use the trips or mileage method, | ||||||
10 | the person shall be deemed to have chosen the mileage method. | ||||||
11 | Any election to use either the trips or mileage method will | ||||||
12 | remain in effect for that motor vehicle for any period for | ||||||
13 | which the Department may issue a notice of tax liability under | ||||||
14 | this Act. | ||||||
15 | For purposes of determining qualifying trips or miles, | ||||||
16 | motor vehicles that carry persons or property for hire, even | ||||||
17 | just between points in Illinois, will be considered used for | ||||||
18 | hire in interstate commerce if the motor vehicle transports | ||||||
19 | persons whose journeys or property whose shipments originate or | ||||||
20 | terminate outside Illinois. The exemption for motor vehicles
| ||||||
21 | used as rolling stock moving in interstate commerce may be
| ||||||
22 | claimed only for the following vehicles: (i) motor vehicles | ||||||
23 | whose gross vehicle weight
rating exceeds 16,000 pounds; and | ||||||
24 | (ii) limousines, as defined in Section 1-139.1 of the Illinois | ||||||
25 | Vehicle Code. This definition applies to all property purchased | ||||||
26 | for the purpose of being attached to those motor vehicles as a |
| |||||||
| |||||||
1 | part thereof. | ||||||
2 | (d) Beginning July 1, 2004, "use as rolling stock moving in | ||||||
3 | interstate commerce" in paragraphs (d) and (d-1) of the | ||||||
4 | definition of "sale of service" in Section 2 occurs for | ||||||
5 | trailers, as defined in Section 1-209 of the Illinois Vehicle | ||||||
6 | Code, semitrailers as defined in Section 1-187 of the Illinois | ||||||
7 | Vehicle Code, and pole trailers as defined in Section 1-161 of | ||||||
8 | the Illinois Vehicle Code, when during a 12-month period the | ||||||
9 | rolling stock has carried persons or property for hire in | ||||||
10 | interstate commerce for greater than 50% of its total trips for | ||||||
11 | that period or for greater than 50% of its total miles for that | ||||||
12 | period. The person claiming the exemption for a trailer or | ||||||
13 | trailers that will not be dedicated to a motor vehicle or group | ||||||
14 | of motor vehicles shall make an election at the time of | ||||||
15 | purchase to use either the trips or mileage method. Persons who | ||||||
16 | purchased trailers prior to July 1, 2004 that are not dedicated | ||||||
17 | to a motor vehicle or group of motor vehicles shall make an | ||||||
18 | election to use either the trips or mileage method and document | ||||||
19 | that election in their books and records. If no election is | ||||||
20 | made under this subsection to use the trips or mileage method, | ||||||
21 | the person shall be deemed to have chosen the mileage method. | ||||||
22 | Any election to use either the trips or mileage method will | ||||||
23 | remain in effect for that trailer for any period for which the | ||||||
24 | Department may issue a notice of tax liability under this Act. | ||||||
25 | For purposes of determining qualifying trips or miles, | ||||||
26 | trailers, semitrailers, or pole trailers that carry property |
| |||||||
| |||||||
1 | for hire, even just between points in Illinois, will be | ||||||
2 | considered used for hire in interstate commerce if the | ||||||
3 | trailers, semitrailers, or pole trailers transport property | ||||||
4 | whose shipments originate or terminate outside Illinois. This | ||||||
5 | definition applies to all property purchased for the purpose of | ||||||
6 | being attached to those trailers, semitrailers, or pole | ||||||
7 | trailers as a part thereof. In lieu of a person providing | ||||||
8 | documentation regarding the qualifying use of each individual | ||||||
9 | trailer, semitrailer, or pole trailer, that person may document | ||||||
10 | such qualifying use by providing documentation of the | ||||||
11 | following: | ||||||
12 | (1) If a trailer, semitrailer, or pole trailer is | ||||||
13 | dedicated to a motor vehicle that qualifies as rolling | ||||||
14 | stock moving in interstate commerce under subsection (c) of | ||||||
15 | this Section, then that trailer, semitrailer, or pole | ||||||
16 | trailer qualifies as rolling stock moving in interstate | ||||||
17 | commerce under this subsection. | ||||||
18 | (2) If a trailer, semitrailer, or pole trailer is | ||||||
19 | dedicated to a group of motor vehicles that all qualify as | ||||||
20 | rolling stock moving in interstate commerce under | ||||||
21 | subsection (c) of this Section, then that trailer, | ||||||
22 | semitrailer, or pole trailer qualifies as rolling stock | ||||||
23 | moving in interstate commerce under this subsection. | ||||||
24 | (3) If one or more trailers, semitrailers, or pole | ||||||
25 | trailers are dedicated to a group of motor vehicles and not | ||||||
26 | all of those motor vehicles in that group qualify as |
| |||||||
| |||||||
1 | rolling stock moving in interstate commerce under | ||||||
2 | subsection (c) of this Section, then the percentage of | ||||||
3 | those trailers, semitrailers, or pole trailers that | ||||||
4 | qualifies as rolling stock moving in interstate commerce | ||||||
5 | under this subsection is equal to the percentage of those | ||||||
6 | motor vehicles in that group that qualify as rolling stock | ||||||
7 | moving in interstate commerce under subsection (c) of this | ||||||
8 | Section to which those trailers, semitrailers, or pole | ||||||
9 | trailers are dedicated. However, to determine the | ||||||
10 | qualification for the exemption provided under this item | ||||||
11 | (3), the mathematical application of the qualifying | ||||||
12 | percentage to one or more trailers, semitrailers, or pole | ||||||
13 | trailers under this subpart shall not be allowed as to any | ||||||
14 | fraction of a trailer, semitrailer, or pole trailer.
| ||||||
15 | (e) Beginning July 1, 2009, "use as rolling stock moving in | ||||||
16 | interstate commerce" in paragraphs (d) and (d-1) of the | ||||||
17 | definition of "sale of service" in Section 2 occurs for | ||||||
18 | aircraft and watercraft when during a 12-month period the | ||||||
19 | rolling stock has carried persons or property for hire in | ||||||
20 | interstate commerce for greater than 50% of its total trips for | ||||||
21 | that period or for greater than 50% of its total miles for that | ||||||
22 | period. The person claiming the exemption shall make an | ||||||
23 | election at the time of purchase to use either the trips or | ||||||
24 | mileage method. Persons who purchased aircraft or watercraft | ||||||
25 | prior to July 1, 2009 shall make an election to use either the | ||||||
26 | trips or mileage method and document that election in their |
| |||||||
| |||||||
1 | books and records. If no election is made under this subsection | ||||||
2 | to use the trips or mileage method, the person shall be deemed | ||||||
3 | to have chosen the mileage method. | ||||||
4 | (f) Any election to use either the trips or mileage method | ||||||
5 | made under the provisions of subsections (c), (d), or (e) of | ||||||
6 | this Section will remain in effect for the life of that item. | ||||||
7 | (Source: P.A. 95-528, eff. 8-28-07.)
| ||||||
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
|
| |||||||
| |||||||
1 | 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 |
| |||||||
| |||||||
1 | 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 the following vehicles: (i) motor vehicles | ||||||
14 | whose gross vehicle weight
rating exceeds 16,000 pounds; and | ||||||
15 | (ii) limousines, as defined in Section 1-139.1 of the Illinois | ||||||
16 | Vehicle Code. This definition applies to all property purchased | ||||||
17 | for the purpose of being attached to those motor vehicles as a | ||||||
18 | part thereof. | ||||||
19 | (d) Beginning July 1, 2004, "use as rolling stock moving in | ||||||
20 | interstate commerce" in paragraphs (12) and (13) of Section 2-5 | ||||||
21 | occurs for trailers, as defined in Section 1-209 of the | ||||||
22 | Illinois Vehicle Code, semitrailers as defined in Section 1-187 | ||||||
23 | of the Illinois Vehicle Code, and pole trailers as defined in | ||||||
24 | Section 1-161 of the Illinois Vehicle Code, when during a | ||||||
25 | 12-month period the rolling stock has carried persons or | ||||||
26 | property for hire in interstate commerce for greater than 50% |
| |||||||
| |||||||
1 | of its total trips for that period or for greater than 50% of | ||||||
2 | its total miles for that period. The person claiming the | ||||||
3 | exemption for a trailer or trailers that will not be dedicated | ||||||
4 | to a motor vehicle or group of motor vehicles shall make an | ||||||
5 | election at the time of purchase to use either the trips or | ||||||
6 | mileage method. Persons who purchased trailers prior to July 1, | ||||||
7 | 2004 that are not dedicated to a motor vehicle or group of | ||||||
8 | motor vehicles shall make an election to use either the trips | ||||||
9 | or mileage method and document that election in their books and | ||||||
10 | records. If no election is made under this subsection to use | ||||||
11 | the trips or mileage method, the person shall be deemed to have | ||||||
12 | chosen the mileage method. Any election to use either the trips | ||||||
13 | or mileage method will remain in effect for that trailer for | ||||||
14 | any period for which the Department may issue a notice of tax | ||||||
15 | liability under this Act. | ||||||
16 | For purposes of determining qualifying trips or miles, | ||||||
17 | trailers, semitrailers, or pole trailers that carry property | ||||||
18 | for hire, even just between points in Illinois, will be | ||||||
19 | considered used for hire in interstate commerce if the | ||||||
20 | trailers, semitrailers, or pole trailers transport property | ||||||
21 | whose shipments originate or terminate outside Illinois. This | ||||||
22 | definition applies to all property purchased for the purpose of | ||||||
23 | being attached to those trailers, semitrailers, or pole | ||||||
24 | trailers as a part thereof. In lieu of a person providing | ||||||
25 | documentation regarding the qualifying use of each individual | ||||||
26 | trailer, semitrailer, or pole trailer, that person may document |
| |||||||
| |||||||
1 | such qualifying use by providing documentation of the | ||||||
2 | following: | ||||||
3 | (1) If a trailer, semitrailer, or pole trailer is | ||||||
4 | dedicated to a motor vehicle that qualifies as rolling | ||||||
5 | stock moving in interstate commerce under subsection (c) of | ||||||
6 | this Section, then that trailer, semitrailer, or pole | ||||||
7 | trailer qualifies as rolling stock moving in interstate | ||||||
8 | commerce under this subsection. | ||||||
9 | (2) If a trailer, semitrailer, or pole trailer is | ||||||
10 | dedicated to a group of motor vehicles that all qualify as | ||||||
11 | rolling stock moving in interstate commerce under | ||||||
12 | subsection (c) of this Section, then that trailer, | ||||||
13 | semitrailer, or pole trailer qualifies as rolling stock | ||||||
14 | moving in interstate commerce under this subsection. | ||||||
15 | (3) If one or more trailers, semitrailers, or pole | ||||||
16 | trailers are dedicated to a group of motor vehicles and not | ||||||
17 | all of those motor vehicles in that group qualify as | ||||||
18 | rolling stock moving in interstate commerce under | ||||||
19 | subsection (c) of this Section, then the percentage of | ||||||
20 | those trailers, semitrailers, or pole trailers that | ||||||
21 | qualifies as rolling stock moving in interstate commerce | ||||||
22 | under this subsection is equal to the percentage of those | ||||||
23 | motor vehicles in that group that qualify as rolling stock | ||||||
24 | moving in interstate commerce under subsection (c) of this | ||||||
25 | Section to which those trailers, semitrailers, or pole | ||||||
26 | trailers are dedicated. However, to determine the |
| |||||||
| |||||||
1 | qualification for the exemption provided under this item | ||||||
2 | (3), the mathematical application of the qualifying | ||||||
3 | percentage to one or more trailers, semitrailers, or pole | ||||||
4 | trailers under this subpart shall not be allowed as to any | ||||||
5 | fraction of a trailer, semitrailer, or pole trailer.
| ||||||
6 | (e) Beginning July 1, 2009, "use as rolling stock moving in | ||||||
7 | interstate commerce" in paragraphs (12) and (13) of Section 2-5 | ||||||
8 | occurs for aircraft and watercraft when during a 12-month | ||||||
9 | period the rolling stock has carried persons or property for | ||||||
10 | hire in interstate commerce for greater than 50% of its total | ||||||
11 | trips for that period or for greater than 50% of its total | ||||||
12 | miles for that period. The person claiming the exemption shall | ||||||
13 | make an election at the time of purchase to use either the | ||||||
14 | trips or mileage method. Persons who purchased aircraft or | ||||||
15 | watercraft prior to July 1, 2009 shall make an election to use | ||||||
16 | either the trips or mileage method and document that election | ||||||
17 | in their books and records. If no election is made under this | ||||||
18 | subsection to use the trips or mileage method, the person shall | ||||||
19 | be deemed to have chosen the mileage method. | ||||||
20 | (f) Any election to use either the trips or mileage method | ||||||
21 | made under the provisions of subsections (c), (d), or (e) of | ||||||
22 | this Section will remain in effect for the life of that item. | ||||||
23 | (Source: P.A. 95-528, eff. 8-28-07.)
| ||||||
24 | Section 99. Effective date. This Act takes effect upon | ||||||
25 | becoming law.
|