99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2425

 

Introduced 2/9/2016, by Sen. Sue Rezin

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 120/2-51

    Amends the Retailers' Occupation Tax Act. Makes a technical change in a Section concerning rolling stock.


LRB099 18686 HLH 43069 b

 

 

A BILL FOR

 

SB2425LRB099 18686 HLH 43069 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Retailers' Occupation Tax Act is amended by
5changing Section 2-51 as follows:
 
6    (35 ILCS 120/2-51)
7    Sec. 2-51. Motor vehicles; trailers; use as rolling stock
8definition.
9    (a) Through June 30, 2003, "use as rolling stock moving in
10interstate commerce" in paragraphs (12) and (13) of Section 2-5
11means for motor vehicles, as defined in Section 1-146 of the
12the Illinois Vehicle Code, and trailers, as defined in Section
131-209 of the Illinois Vehicle Code, when on 15 or more
14occasions in a 12-month period the motor vehicle and trailer
15has carried persons or property for hire in interstate
16commerce, even just between points in Illinois, if the motor
17vehicle and trailer transports persons whose journeys or
18property whose shipments originate or terminate outside
19Illinois. This definition applies to all property purchased for
20the purpose of being attached to those motor vehicles or
21trailers 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

 

 

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1paragraphs (12) and (13) of Section 2-5 occurs for motor
2vehicles, as defined in Section 1-146 of the Illinois Vehicle
3Code, when during a 12-month period the rolling stock has
4carried persons or property for hire in interstate commerce for
551% of its total trips and transports persons whose journeys or
6property whose shipments originate or terminate outside
7Illinois. Trips that are only between points in Illinois shall
8not be counted as interstate trips when calculating whether the
9tangible personal property qualifies for the exemption but such
10trips shall be included in total trips taken.
11    (c) Beginning July 1, 2004, "use as rolling stock moving in
12interstate commerce" in paragraphs (12) and (13) of Section 2-5
13occurs for motor vehicles, as defined in Section 1-146 of the
14Illinois Vehicle Code, when during a 12-month period the
15rolling stock has carried persons or property for hire in
16interstate commerce for greater than 50% of its total trips for
17that period or for greater than 50% of its total miles for that
18period. The person claiming the exemption shall make an
19election at the time of purchase to use either the trips or
20mileage method. Persons who purchased motor vehicles prior to
21July 1, 2004 shall make an election to use either the trips or
22mileage method and document that election in their books and
23records. If no election is made under this subsection to use
24the trips or mileage method, the person shall be deemed to have
25chosen the mileage method.
26    For purposes of determining qualifying trips or miles,

 

 

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1motor vehicles that carry persons or property for hire, even
2just between points in Illinois, will be considered used for
3hire in interstate commerce if the motor vehicle transports
4persons whose journeys or property whose shipments originate or
5terminate outside Illinois. The exemption for motor vehicles
6used as rolling stock moving in interstate commerce may be
7claimed only for the following vehicles: (i) motor vehicles
8whose gross vehicle weight rating exceeds 16,000 pounds; and
9(ii) limousines, as defined in Section 1-139.1 of the Illinois
10Vehicle Code. This definition applies to all property purchased
11for the purpose of being attached to those motor vehicles as a
12part thereof.
13    (d) Beginning July 1, 2004, "use as rolling stock moving in
14interstate commerce" in paragraphs (12) and (13) of Section 2-5
15occurs for trailers, as defined in Section 1-209 of the
16Illinois Vehicle Code, semitrailers as defined in Section 1-187
17of the Illinois Vehicle Code, and pole trailers as defined in
18Section 1-161 of the Illinois Vehicle Code, when during a
1912-month period the rolling stock has carried persons or
20property for hire in interstate commerce for greater than 50%
21of its total trips for that period or for greater than 50% of
22its total miles for that period. The person claiming the
23exemption for a trailer or trailers that will not be dedicated
24to a motor vehicle or group of motor vehicles shall make an
25election at the time of purchase to use either the trips or
26mileage method. Persons who purchased trailers prior to July 1,

 

 

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12004 that are not dedicated to a motor vehicle or group of
2motor vehicles shall make an election to use either the trips
3or mileage method and document that election in their books and
4records. If no election is made under this subsection to use
5the trips or mileage method, the person shall be deemed to have
6chosen the mileage method.
7    For purposes of determining qualifying trips or miles,
8trailers, semitrailers, or pole trailers that carry property
9for hire, even just between points in Illinois, will be
10considered used for hire in interstate commerce if the
11trailers, semitrailers, or pole trailers transport property
12whose shipments originate or terminate outside Illinois. This
13definition applies to all property purchased for the purpose of
14being attached to those trailers, semitrailers, or pole
15trailers as a part thereof. In lieu of a person providing
16documentation regarding the qualifying use of each individual
17trailer, semitrailer, or pole trailer, that person may document
18such qualifying use by providing documentation of the
19following:
20        (1) If a trailer, semitrailer, or pole trailer is
21    dedicated to a motor vehicle that qualifies as rolling
22    stock moving in interstate commerce under subsection (c) of
23    this Section, then that trailer, semitrailer, or pole
24    trailer qualifies as rolling stock moving in interstate
25    commerce under this subsection.
26        (2) If a trailer, semitrailer, or pole trailer is

 

 

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1    dedicated to a group of motor vehicles that all qualify as
2    rolling stock moving in interstate commerce under
3    subsection (c) of this Section, then that trailer,
4    semitrailer, or pole trailer qualifies as rolling stock
5    moving in interstate commerce under this subsection.
6        (3) If one or more trailers, semitrailers, or pole
7    trailers are dedicated to a group of motor vehicles and not
8    all of those motor vehicles in that group qualify as
9    rolling stock moving in interstate commerce under
10    subsection (c) of this Section, then the percentage of
11    those trailers, semitrailers, or pole trailers that
12    qualifies as rolling stock moving in interstate commerce
13    under this subsection is equal to the percentage of those
14    motor vehicles in that group that qualify as rolling stock
15    moving in interstate commerce under subsection (c) of this
16    Section to which those trailers, semitrailers, or pole
17    trailers are dedicated. However, to determine the
18    qualification for the exemption provided under this item
19    (3), the mathematical application of the qualifying
20    percentage to one or more trailers, semitrailers, or pole
21    trailers under this subpart shall not be allowed as to any
22    fraction of a trailer, semitrailer, or pole trailer.
23    (e) For aircraft and watercraft purchased on or after
24January 1, 2014, "use as rolling stock moving in interstate
25commerce" in paragraphs (12) and (13) of Section 2-5 occurs
26when, during a 12-month period, the rolling stock has carried

 

 

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1persons or property for hire in interstate commerce for greater
2than 50% of its total trips for that period or for greater than
350% of its total miles for that period. The person claiming the
4exemption shall make an election at the time of purchase to use
5either the trips or mileage method and document that election
6in their books and records. If no election is made under this
7subsection to use the trips or mileage method, the person shall
8be deemed to have chosen the mileage method. For aircraft,
9flight hours may be used in lieu of recording miles in
10determining whether the aircraft meets the mileage test in this
11subsection. For watercraft, nautical miles or trip hours may be
12used in lieu of recording miles in determining whether the
13watercraft meets the mileage test in this subsection.
14    Notwithstanding any other provision of law to the contrary,
15property purchased on or after January 1, 2014 for the purpose
16of being attached to aircraft or watercraft as a part thereof
17qualifies as rolling stock moving in interstate commerce only
18if the aircraft or watercraft to which it will be attached
19qualifies as rolling stock moving in interstate commerce under
20the test set forth in this subsection (e), regardless of when
21the aircraft or watercraft was purchased. Persons who purchased
22aircraft or watercraft prior to January 1, 2014 shall make an
23election to use either the trips or mileage method and document
24that election in their books and records for the purpose of
25determining whether property purchased on or after January 1,
262014 for the purpose of being attached to aircraft or

 

 

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1watercraft as a part thereof qualifies as rolling stock moving
2in interstate commerce under this subsection (e).
3    (f) The election to use either the trips or mileage method
4made under the provisions of subsections (c), (d), or (e) of
5this Section will remain in effect for the duration of the
6purchaser's ownership of that item.
7(Source: P.A. 98-584, eff. 8-27-13.)