94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB3866

 

Introduced 2/25/2005, by Rep. David Reis - Bob Biggins - Aaron Schock - Roger Jenisch - James H. Meyer, et al.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-61
35 ILCS 110/3-51
35 ILCS 115/2d
35 ILCS 120/2-51

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, on July 1, 2005, the rolling stock exemption reverts to its form prior to July 1, 2003. Effective immediately.


LRB094 04094 BDD 38583 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3866 LRB094 04094 BDD 38583 b

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 and beginning again on July 1,
10 2005, "use as rolling stock moving in interstate commerce" in
11 subsections (b) and (c) of Section 3-55 means for motor
12 vehicles, as defined in Section 1-146 of the Illinois Vehicle
13 Code, and trailers, as defined in Section 1-209 of the Illinois
14 Vehicle Code, when on 15 or more occasions in a 12-month period
15 the motor vehicle and trailer has carried persons or property
16 for hire in interstate commerce, even just between points in
17 Illinois, if the motor vehicle and trailer transports persons
18 whose journeys or property whose shipments originate or
19 terminate outside Illinois. This definition applies to all
20 property purchased for the purpose of being attached to those
21 motor vehicles or 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
24 paragraphs (b) and (c) of Section 3-55 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
27 carried persons or property for hire in interstate commerce for
28 51% of its total trips and transports persons whose journeys or
29 property whose shipments originate or terminate outside
30 Illinois. Trips that are only between points in Illinois shall
31 not be counted as interstate trips when calculating whether the
32 tangible personal property qualifies for the exemption but such

 

 

HB3866 - 2 - LRB094 04094 BDD 38583 b

1 trips shall be included in total trips taken.
2     (c) Beginning July 1, 2004 and through June 30, 2005, "use
3 as rolling stock moving in interstate commerce" in paragraphs
4 (b) and (c) of Section 3-55 occurs for motor vehicles, as
5 defined in Section 1-146 of the Illinois Vehicle Code, when
6 during a 12-month period the rolling stock has carried persons
7 or property for hire in interstate commerce for greater than
8 50% of its total trips for that period or for greater than 50%
9 of its total miles for that period. The person claiming the
10 exemption shall make an election at the time of purchase to use
11 either the trips or mileage method. Persons who purchased motor
12 vehicles prior to July 1, 2004 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. Any election to
17 use either the trips or mileage method will remain in effect
18 for that motor vehicle for any period for which the Department
19 may issue a notice of tax liability under this Act.
20     For purposes of determining qualifying trips or miles,
21 motor vehicles that carry persons or property for hire, even
22 just between points in Illinois, will be considered used for
23 hire in interstate commerce if the motor vehicle transports
24 persons whose journeys or property whose shipments originate or
25 terminate outside Illinois. The exemption for motor vehicles
26 used as rolling stock moving in interstate commerce may be
27 claimed only for motor vehicles whose gross vehicle weight
28 rating exceeds 16,000 pounds. This definition applies to all
29 property purchased for the purpose of being attached to those
30 motor vehicles as a part thereof.
31     (d) Beginning July 1, 2004 and through June 30, 2005, "use
32 as rolling stock moving in interstate commerce" in paragraphs
33 (b) and (c) of Section 3-55 occurs for trailers, as defined in
34 Section 1-209 of the Illinois Vehicle Code, semitrailers as
35 defined in Section 1-187 of the Illinois Vehicle Code, and pole
36 trailers as defined in Section 1-161 of the Illinois Vehicle

 

 

HB3866 - 3 - LRB094 04094 BDD 38583 b

1 Code, when during a 12-month period the rolling stock has
2 carried persons or property for hire in interstate commerce for
3 greater than 50% of its total trips for that period or for
4 greater than 50% of its total miles for that period. The person
5 claiming the exemption for a trailer or trailers that will not
6 be dedicated to a motor vehicle or group of motor vehicles
7 shall make an election at the time of purchase to use either
8 the trips or mileage method. Persons who purchased trailers
9 prior to July 1, 2004 that are not dedicated to a motor vehicle
10 or group of motor vehicles shall make an election to use either
11 the trips or mileage method and document that election in their
12 books and records. If no election is made under this subsection
13 to use the trips or mileage method, the person shall be deemed
14 to have chosen the mileage method. Any election to use either
15 the trips or mileage method will remain in effect for that
16 trailer for any period for which the Department may issue a
17 notice of tax 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
27 documentation regarding the qualifying use of each individual
28 trailer, semitrailer, or pole trailer, that person may document
29 such qualifying use by providing documentation of the
30 following:
31         (1) If a trailer, semitrailer, or pole trailer is
32     dedicated to a motor vehicle that qualifies as rolling
33     stock moving in interstate commerce under subsection (c) of
34     this Section, then that trailer, semitrailer, or pole
35     trailer qualifies as rolling stock moving in interstate
36     commerce under this subsection.

 

 

HB3866 - 4 - LRB094 04094 BDD 38583 b

1         (2) If a trailer, semitrailer, or pole trailer is
2     dedicated to a group of motor vehicles that all qualify as
3     rolling stock moving in interstate commerce under
4     subsection (c) of this Section, then that trailer,
5     semitrailer, or pole trailer qualifies as rolling stock
6     moving in interstate commerce under this subsection.
7         (3) If one or more trailers, semitrailers, or pole
8     trailers are dedicated to a group of motor vehicles and not
9     all of those motor vehicles in that group qualify as
10     rolling stock moving in interstate commerce under
11     subsection (c) of this Section, then the percentage of
12     those trailers, semitrailers, or pole trailers that
13     qualifies as rolling stock moving in interstate commerce
14     under this subsection is equal to the percentage of those
15     motor vehicles in that group that qualify as rolling stock
16     moving in interstate commerce under subsection (c) of this
17     Section to which those trailers, semitrailers, or pole
18     trailers are dedicated. However, to determine the
19     qualification for the exemption provided under this item
20     (3), the mathematical application of the qualifying
21     percentage to one or more trailers, semitrailers, or pole
22     trailers under this subpart shall not be allowed as to any
23     fraction of a trailer, semitrailer, or pole trailer.
24 (Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
 
25     Section 10. The Service Use Tax Act is amended by changing
26 Section 3-51 as follows:
 
27     (35 ILCS 110/3-51)
28     Sec. 3-51. Motor vehicles; trailers; use as rolling stock
29 definition.
30     (a) Through June 30, 2003 and beginning again on July 1,
31 2005, "use as rolling stock moving in interstate commerce" in
32 subsection (b) of Section 3-45 means for motor vehicles, as
33 defined in Section 1-46 of the Illinois Vehicle Code, and
34 trailers, as defined in Section 1-209 of the Illinois Vehicle

 

 

HB3866 - 5 - LRB094 04094 BDD 38583 b

1 Code, when on 15 or more occasions in a 12-month period the
2 motor vehicle and trailer has carried persons or property for
3 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 (4) and (4a) of the definition of "sale of service"
12 in Section 2 and subsection (b) of Section 3-45 occurs for
13 motor vehicles, as defined in Section 1-146 of the Illinois
14 Vehicle Code, when during a 12-month period the rolling stock
15 has carried persons or property for hire in interstate commerce
16 for 51% of its total trips and transports persons whose
17 journeys or property whose shipments originate or terminate
18 outside Illinois. Trips that are only between points in
19 Illinois shall not be counted as interstate trips when
20 calculating whether the tangible personal property qualifies
21 for the exemption but such trips shall be included in total
22 trips taken.
23     (c) Beginning July 1, 2004 and through June 30, 2005, "use
24 as rolling stock moving in interstate commerce" in paragraphs
25 (4) and (4a) of the definition of "sale of service" in Section
26 2 and subsection (b) of Section 3-45 occurs for motor vehicles,
27 as defined in Section 1-146 of the Illinois Vehicle Code, when
28 during a 12-month period the rolling stock has carried persons
29 or property for hire in interstate commerce for greater than
30 50% of its total trips for that period or for greater than 50%
31 of its total miles for that period. The person claiming the
32 exemption shall make an election at the time of purchase to use
33 either the trips or mileage method. Persons who purchased motor
34 vehicles prior to July 1, 2004 shall make an election to use
35 either the trips or mileage method and document that election
36 in their books and records. If no election is made under this

 

 

HB3866 - 6 - LRB094 04094 BDD 38583 b

1 subsection to use the trips or mileage method, the person shall
2 be deemed to have chosen the mileage method. Any election to
3 use either the trips or mileage method will remain in effect
4 for that motor vehicle for any period for which the Department
5 may issue a notice of 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 and through June 30, 2005, "use
18 as rolling stock moving in interstate commerce" in paragraphs
19 (4) and (4a) of the definition of "sale of service" in Section
20 2 and subsection (b) of Section 3-45 occurs for trailers, as
21 defined in Section 1-209 of the Illinois Vehicle Code,
22 semitrailers as defined in Section 1-187 of the Illinois
23 Vehicle Code, and pole trailers as defined in Section 1-161 of
24 the Illinois Vehicle Code, when during a 12-month period the
25 rolling stock has carried persons or property for hire in
26 interstate commerce for greater than 50% of its total trips for
27 that period or for greater than 50% of its total miles for that
28 period. The person claiming the exemption for a trailer or
29 trailers that will not be dedicated to a motor vehicle or group
30 of motor vehicles shall make an election at the time of
31 purchase to use either the trips or mileage method. Persons who
32 purchased trailers prior to July 1, 2004 that are not dedicated
33 to a motor vehicle or group of motor vehicles shall make an
34 election to use either the trips or mileage method and document
35 that election in their books and records. If no election is
36 made under this subsection to use the trips or mileage method,

 

 

HB3866 - 7 - LRB094 04094 BDD 38583 b

1 the person shall be deemed to have chosen the mileage method.
2 Any election to use either the trips or mileage method will
3 remain in effect for that trailer for any period for which the
4 Department may issue a notice of tax liability under this Act.
5     For purposes of determining qualifying trips or miles,
6 trailers, semitrailers, or pole trailers that carry property
7 for hire, even just between points in Illinois, will be
8 considered used for hire in interstate commerce if the
9 trailers, semitrailers, or pole trailers transport property
10 whose shipments originate or terminate outside Illinois. This
11 definition applies to all property purchased for the purpose of
12 being attached to those trailers, semitrailers, or pole
13 trailers as a part thereof. In lieu of a person providing
14 documentation regarding the qualifying use of each individual
15 trailer, semitrailer, or pole trailer, that person may document
16 such qualifying use by providing documentation of the
17 following:
18         (1) If a trailer, semitrailer, or pole trailer is
19     dedicated to a motor vehicle that qualifies as rolling
20     stock moving in interstate commerce under subsection (c) of
21     this Section, then that trailer, semitrailer, or pole
22     trailer qualifies as rolling stock moving in interstate
23     commerce under this subsection.
24         (2) If a trailer, semitrailer, or pole trailer is
25     dedicated to a group of motor vehicles that all qualify as
26     rolling stock moving in interstate commerce under
27     subsection (c) of this Section, then that trailer,
28     semitrailer, or pole trailer qualifies as rolling stock
29     moving in interstate commerce under this subsection.
30         (3) If one or more trailers, semitrailers, or pole
31     trailers are dedicated to a group of motor vehicles and not
32     all of those motor vehicles in that group qualify as
33     rolling stock moving in interstate commerce under
34     subsection (c) of this Section, then the percentage of
35     those trailers, semitrailers, or pole trailers that
36     qualifies as rolling stock moving in interstate commerce

 

 

HB3866 - 8 - LRB094 04094 BDD 38583 b

1     under this subsection is equal to the percentage of those
2     motor vehicles in that group that qualify as rolling stock
3     moving in interstate commerce under subsection (c) of this
4     Section to which those trailers, semitrailers, or pole
5     trailers are dedicated. However, to determine the
6     qualification for the exemption provided under this item
7     (3), the mathematical application of the qualifying
8     percentage to one or more trailers, semitrailers, or pole
9     trailers under this subpart shall not be allowed as to any
10     fraction of a trailer, semitrailer, or pole trailer.
11 (Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
 
12     Section 15. The Service Occupation Tax Act is amended by
13 changing Section 2d as follows:
 
14     (35 ILCS 115/2d)
15     Sec. 2d. Motor vehicles; trailers; use as rolling stock
16 definition.
17     (a) Through June 30, 2003 and beginning again on July 1,
18 2005, "use as rolling stock moving in interstate commerce" in
19 subsections (d) and (d-1) of the definition of "sale of
20 service" in Section 2 means for motor vehicles, as defined in
21 Section 1-146 of the Illinois Vehicle Code, and trailers, as
22 defined in Section 1-209 of the Illinois Vehicle Code, when on
23 15 or more occasions in a 12-month period the motor vehicle and
24 trailer has carried persons or property for hire in interstate
25 commerce, even just between points in Illinois, if the motor
26 vehicle and trailer transports persons whose journeys or
27 property whose shipments originate or terminate outside
28 Illinois. This definition applies to all property purchased for
29 the purpose of being attached to those motor vehicles or
30 trailers as a part thereof.
31     (b) On and after July 1, 2003 and through June 30, 2004,
32 "use as rolling stock moving in interstate commerce" in
33 paragraphs (d) and (d-1) of the definition of "sale of service"
34 in Section 2 occurs for motor vehicles, as defined in Section

 

 

HB3866 - 9 - LRB094 04094 BDD 38583 b

1 1-146 of the Illinois Vehicle Code, when during a 12-month
2 period the rolling stock has carried persons or property for
3 hire in interstate commerce for 51% of its total trips and
4 transports persons whose journeys or property whose shipments
5 originate or terminate outside Illinois. Trips that are only
6 between points in Illinois will not be counted as interstate
7 trips when calculating whether the tangible personal property
8 qualifies for the exemption but such trips will be included in
9 total trips taken.
10     (c) Beginning July 1, 2004 and through June 30, 2005, "use
11 as rolling stock moving in interstate commerce" in paragraphs
12 (d) and (d-1) of the definition of "sale of service" in Section
13 2 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
27 for any period for which the Department may issue a notice of
28 tax liability under this Act.
29     For purposes of determining qualifying trips or miles,
30 motor vehicles that carry persons or property for hire, even
31 just between points in Illinois, will be considered used for
32 hire in interstate commerce if the motor vehicle transports
33 persons whose journeys or property whose shipments originate or
34 terminate outside Illinois. The exemption for motor vehicles
35 used as rolling stock moving in interstate commerce may be
36 claimed only for motor vehicles whose gross vehicle weight

 

 

HB3866 - 10 - LRB094 04094 BDD 38583 b

1 rating exceeds 16,000 pounds. This definition applies to all
2 property purchased for the purpose of being attached to those
3 motor vehicles as a part thereof.
4     (d) Beginning July 1, 2004 and through June 30, 2005, "use
5 as rolling stock moving in interstate commerce" in paragraphs
6 (d) and (d-1) of the definition of "sale of service" in Section
7 2 occurs for trailers, as defined in Section 1-209 of the
8 Illinois Vehicle Code, semitrailers as defined in Section 1-187
9 of the Illinois Vehicle Code, and pole trailers as defined in
10 Section 1-161 of the Illinois Vehicle Code, when during a
11 12-month period the rolling stock has carried persons or
12 property for hire in interstate commerce for greater than 50%
13 of its total trips for that period or for greater than 50% of
14 its total miles for that period. The person claiming the
15 exemption for a trailer or trailers that will not be dedicated
16 to a motor vehicle or group of motor vehicles shall make an
17 election at the time of purchase to use either the trips or
18 mileage method. Persons who purchased trailers prior to July 1,
19 2004 that are not dedicated to a motor vehicle or group of
20 motor vehicles shall make an election to use either the trips
21 or mileage method and document that election in their books and
22 records. If no election is made under this subsection to use
23 the trips or mileage method, the person shall be deemed to have
24 chosen the mileage method. Any election to use either the trips
25 or mileage method will remain in effect for that trailer for
26 any period for which the Department may issue a notice of tax
27 liability under this Act.
28     For purposes of determining qualifying trips or miles,
29 trailers, semitrailers, or pole trailers that carry property
30 for hire, even just between points in Illinois, will be
31 considered used for hire in interstate commerce if the
32 trailers, semitrailers, or pole trailers transport property
33 whose shipments originate or terminate outside Illinois. This
34 definition applies to all property purchased for the purpose of
35 being attached to those trailers, semitrailers, or pole
36 trailers as a part thereof. In lieu of a person providing

 

 

HB3866 - 11 - LRB094 04094 BDD 38583 b

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
27     Section to which those trailers, semitrailers, or pole
28     trailers are dedicated. However, to determine the
29     qualification for the exemption provided under this item
30     (3), the mathematical application of the qualifying
31     percentage to one or more trailers, semitrailers, or pole
32     trailers under this subpart shall not be allowed as to any
33     fraction of a trailer, semitrailer, or pole trailer.
34 (Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
 
35     Section 20. The Retailers' Occupation Tax Act is amended by

 

 

HB3866 - 12 - LRB094 04094 BDD 38583 b

1 changing Section 2-51 as follows:
 
2     (35 ILCS 120/2-51)
3     Sec. 2-51. Motor vehicles; trailers; use as rolling stock
4 definition.
5     (a) Through June 30, 2003 and beginning again on July 1,
6 2005, "use as rolling stock moving in interstate commerce" in
7 paragraphs (12) and (13) of Section 2-5 means for motor
8 vehicles, as defined in Section 1-146 of the Illinois Vehicle
9 Code, and trailers, as defined in Section 1-209 of the Illinois
10 Vehicle Code, when on 15 or more occasions in a 12-month period
11 the motor vehicle and trailer has carried persons or property
12 for hire in interstate commerce, even just between points in
13 Illinois, if the motor vehicle and trailer transports persons
14 whose journeys or property whose shipments originate or
15 terminate outside Illinois. This definition applies to all
16 property purchased for the purpose of being attached to those
17 motor vehicles or trailers as a part thereof.
18     (b) On and after July 1, 2003 and through June 30, 2004,
19 "use as rolling stock moving in interstate commerce" in
20 paragraphs (12) and (13) of Section 2-5 occurs for motor
21 vehicles, as defined in Section 1-146 of the Illinois Vehicle
22 Code, when during a 12-month period the rolling stock has
23 carried persons or property for hire in interstate commerce for
24 51% of its total trips and transports persons whose journeys or
25 property whose shipments originate or terminate outside
26 Illinois. Trips that are only between points in Illinois shall
27 not be counted as interstate trips when calculating whether the
28 tangible personal property qualifies for the exemption but such
29 trips shall be included in total trips taken.
30     (c) Beginning July 1, 2004 and through June 30, 2005, "use
31 as rolling stock moving in interstate commerce" in paragraphs
32 (12) and (13) of Section 2-5 occurs for motor vehicles, as
33 defined in Section 1-146 of the Illinois Vehicle Code, when
34 during a 12-month period the rolling stock has carried persons
35 or property for hire in interstate commerce for greater than

 

 

HB3866 - 13 - LRB094 04094 BDD 38583 b

1 50% of its total trips for that period or for greater than 50%
2 of its total miles for that period. The person claiming the
3 exemption shall make an election at the time of purchase to use
4 either the trips or mileage method. Persons who purchased motor
5 vehicles prior to July 1, 2004 shall make an election to use
6 either the trips or mileage method and document that election
7 in their books and records. If no election is made under this
8 subsection to use the trips or mileage method, the person shall
9 be deemed to have chosen the mileage method. Any election to
10 use either the trips or mileage method will remain in effect
11 for that motor vehicle for any period for which the Department
12 may issue a notice of tax liability under this Act.
13     For purposes of determining qualifying trips or miles,
14 motor vehicles that carry persons or property for hire, even
15 just between points in Illinois, will be considered used for
16 hire in interstate commerce if the motor vehicle transports
17 persons whose journeys or property whose shipments originate or
18 terminate outside Illinois. The exemption for motor vehicles
19 used as rolling stock moving in interstate commerce may be
20 claimed only for motor vehicles whose gross vehicle weight
21 rating exceeds 16,000 pounds. This definition applies to all
22 property purchased for the purpose of being attached to those
23 motor vehicles as a part thereof.
24     (d) Beginning July 1, 2004 and through June 30, 2005, "use
25 as rolling stock moving in interstate commerce" in paragraphs
26 (12) and (13) of Section 2-5 occurs for trailers, as defined in
27 Section 1-209 of the Illinois Vehicle Code, semitrailers as
28 defined in Section 1-187 of the Illinois Vehicle Code, and pole
29 trailers as defined in Section 1-161 of the Illinois Vehicle
30 Code, when during a 12-month period the rolling stock has
31 carried persons or property for hire in interstate commerce for
32 greater than 50% of its total trips for that period or for
33 greater than 50% of its total miles for that period. The person
34 claiming the exemption for a trailer or trailers that will not
35 be dedicated to a motor vehicle or group of motor vehicles
36 shall make an election at the time of purchase to use either

 

 

HB3866 - 14 - LRB094 04094 BDD 38583 b

1 the trips or mileage method. Persons who purchased trailers
2 prior to July 1, 2004 that are not dedicated to a motor vehicle
3 or group of motor vehicles shall make an election to use either
4 the trips or mileage method and document that election in their
5 books and records. If no election is made under this subsection
6 to use the trips or mileage method, the person shall be deemed
7 to have chosen the mileage method. Any election to use either
8 the trips or mileage method will remain in effect for that
9 trailer for any period for which the Department may issue a
10 notice of tax liability under this Act.
11     For purposes of determining qualifying trips or miles,
12 trailers, semitrailers, or pole trailers that carry property
13 for hire, even just between points in Illinois, will be
14 considered used for hire in interstate commerce if the
15 trailers, semitrailers, or pole trailers transport property
16 whose shipments originate or terminate outside Illinois. This
17 definition applies to all property purchased for the purpose of
18 being attached to those trailers, semitrailers, or pole
19 trailers as a part thereof. In lieu of a person providing
20 documentation regarding the qualifying use of each individual
21 trailer, semitrailer, or pole trailer, that person may document
22 such qualifying use by providing documentation of the
23 following:
24         (1) If a trailer, semitrailer, or pole trailer is
25     dedicated to a motor vehicle that qualifies as rolling
26     stock moving in interstate commerce under subsection (c) of
27     this Section, then that trailer, semitrailer, or pole
28     trailer qualifies as rolling stock moving in interstate
29     commerce under this subsection.
30         (2) If a trailer, semitrailer, or pole trailer is
31     dedicated to a group of motor vehicles that all qualify as
32     rolling stock moving in interstate commerce under
33     subsection (c) of this Section, then that trailer,
34     semitrailer, or pole trailer qualifies as rolling stock
35     moving in interstate commerce under this subsection.
36         (3) If one or more trailers, semitrailers, or pole

 

 

HB3866 - 15 - LRB094 04094 BDD 38583 b

1     trailers are dedicated to a group of motor vehicles and not
2     all of those motor vehicles in that group qualify as
3     rolling stock moving in interstate commerce under
4     subsection (c) of this Section, then the percentage of
5     those trailers, semitrailers, or pole trailers that
6     qualifies as rolling stock moving in interstate commerce
7     under this subsection is equal to the percentage of those
8     motor vehicles in that group that qualify as rolling stock
9     moving in interstate commerce under subsection (c) of this
10     Section to which those trailers, semitrailers, or pole
11     trailers are dedicated. However, to determine the
12     qualification for the exemption provided under this item
13     (3), the mathematical application of the qualifying
14     percentage to one or more trailers, semitrailers, or pole
15     trailers under this subpart shall not be allowed as to any
16     fraction of a trailer, semitrailer, or pole trailer.
17 (Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
 
18     Section 99. Effective date. This Act takes effect upon
19 becoming law.