97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3447

 

Introduced 2/24/2011, by Rep. Frank J. Mautino

 

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, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act. With respect to the rolling stock exemption for aircraft and watercraft, requires that greater than 50% of the trips or miles in a 12-month period must be qualifying trips (interstate, for hire). Provides that an election of the trips or mileage method remains in effect for the life of the item (now, during a notice of liability period). Effective immediately.


LRB097 07758 HLH 47870 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3447LRB097 07758 HLH 47870 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 Use Tax Act is amended by changing Section
53-61 as follows:
 
6    (35 ILCS 105/3-61)
7    Sec. 3-61. Motor vehicles; trailers; use as rolling stock
8definition.
9    (a) Through June 30, 2003, "use as rolling stock moving in
10interstate commerce" in subsections (b) and (c) of Section 3-55
11means for motor vehicles, as defined in Section 1-146 of the
12Illinois 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 (b) and (c) of Section 3-55 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 (b) and (c) of Section 3-55
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. Any election to use either the trips
26or mileage method will remain in effect for that motor vehicle

 

 

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1for any period for which the Department may issue a notice of
2tax liability under this Act.
3    For purposes of determining qualifying trips or miles,
4motor vehicles that carry persons or property for hire, even
5just between points in Illinois, will be considered used for
6hire in interstate commerce if the motor vehicle transports
7persons whose journeys or property whose shipments originate or
8terminate outside Illinois. The exemption for motor vehicles
9used as rolling stock moving in interstate commerce may be
10claimed only for the following vehicles: (i) motor vehicles
11whose gross vehicle weight rating exceeds 16,000 pounds; and
12(ii) limousines, as defined in Section 1-139.1 of the Illinois
13Vehicle Code. This definition applies to all property purchased
14for the purpose of being attached to those motor vehicles as a
15part thereof.
16    (d) Beginning July 1, 2004, "use as rolling stock moving in
17interstate commerce" in paragraphs (b) and (c) of Section 3-55
18occurs for trailers, as defined in Section 1-209 of the
19Illinois Vehicle Code, semitrailers as defined in Section 1-187
20of the Illinois Vehicle Code, and pole trailers as defined in
21Section 1-161 of the Illinois Vehicle Code, when during a
2212-month period the rolling stock has carried persons or
23property for hire in interstate commerce for greater than 50%
24of its total trips for that period or for greater than 50% of
25its total miles for that period. The person claiming the
26exemption for a trailer or trailers that will not be dedicated

 

 

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1to a motor vehicle or group of motor vehicles shall make an
2election at the time of purchase to use either the trips or
3mileage method. Persons who purchased trailers prior to July 1,
42004 that are not dedicated to a motor vehicle or group of
5motor vehicles shall make an election to use either the trips
6or mileage method and document that election in their books and
7records. If no election is made under this subsection to use
8the trips or mileage method, the person shall be deemed to have
9chosen the mileage method. Any election to use either the trips
10or mileage method will remain in effect for that trailer for
11any period for which the Department may issue a notice of tax
12liability under this Act.
13    For purposes of determining qualifying trips or miles,
14trailers, semitrailers, or pole trailers that carry property
15for hire, even just between points in Illinois, will be
16considered used for hire in interstate commerce if the
17trailers, semitrailers, or pole trailers transport property
18whose shipments originate or terminate outside Illinois. This
19definition applies to all property purchased for the purpose of
20being attached to those trailers, semitrailers, or pole
21trailers as a part thereof. In lieu of a person providing
22documentation regarding the qualifying use of each individual
23trailer, semitrailer, or pole trailer, that person may document
24such qualifying use by providing documentation of the
25following:
26        (1) If a trailer, semitrailer, or pole trailer is

 

 

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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

 

 

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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, 2011, "use as rolling stock moving in
4interstate commerce" in paragraphs (b) and (c) of Section 3-55
5occurs for aircraft and watercraft when during a 12-month
6period the rolling stock has carried persons or property for
7hire in interstate commerce for greater than 50% of its total
8trips for that period or for greater than 50% of its total
9miles for that period. The person claiming the exemption shall
10make an election at the time of purchase to use either the
11trips or mileage method. Persons who purchased aircraft or
12watercraft prior to July 1, 2011 shall make an election to use
13either the trips or mileage method and document that election
14in their books and records. If no election is made under this
15subsection to use the trips or mileage method, the person shall
16be deemed to have chosen the mileage method.
17    (f) Any election to use either the trips or mileage method
18made under the provisions of subsections (c), (d), or (e) of
19this 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
22Section 3-51 as follows:
 
23    (35 ILCS 110/3-51)
24    Sec. 3-51. Motor vehicles; trailers; use as rolling stock

 

 

HB3447- 7 -LRB097 07758 HLH 47870 b

1definition.
2    (a) Through June 30, 2003, "use as rolling stock moving in
3interstate commerce" in subsection (b) of Section 3-45 means
4for motor vehicles, as defined in Section 1-46 of the Illinois
5Vehicle Code, and trailers, as defined in Section 1-209 of the
6Illinois Vehicle Code, when on 15 or more occasions in a
712-month period the motor vehicle and trailer has carried
8persons or property for hire in interstate commerce, even just
9between points in Illinois, if the motor vehicle and trailer
10transports persons whose journeys or property whose shipments
11originate or terminate outside Illinois. This definition
12applies to all property purchased for the purpose of being
13attached 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
16paragraphs (4) and (4a) of the definition of "sale of service"
17in Section 2 and subsection (b) of Section 3-45 occurs for
18motor vehicles, as defined in Section 1-146 of the Illinois
19Vehicle Code, when during a 12-month period the rolling stock
20has carried persons or property for hire in interstate commerce
21for 51% of its total trips and transports persons whose
22journeys or property whose shipments originate or terminate
23outside Illinois. Trips that are only between points in
24Illinois shall not be counted as interstate trips when
25calculating whether the tangible personal property qualifies
26for the exemption but such trips shall be included in total

 

 

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1trips taken.
2    (c) Beginning July 1, 2004, "use as rolling stock moving in
3interstate commerce" in paragraphs (4) and (4a) of the
4definition of "sale of service" in Section 2 and subsection (b)
5of Section 3-45 occurs for motor vehicles, as defined in
6Section 1-146 of the Illinois Vehicle Code, when during a
712-month period the rolling stock has carried persons or
8property for hire in interstate commerce for greater than 50%
9of its total trips for that period or for greater than 50% of
10its total miles for that period. The person claiming the
11exemption shall make an election at the time of purchase to use
12either the trips or mileage method. Persons who purchased motor
13vehicles prior to July 1, 2004 shall make an election to use
14either the trips or mileage method and document that election
15in their books and records. If no election is made under this
16subsection to use the trips or mileage method, the person shall
17be deemed to have chosen the mileage method. Any election to
18use either the trips or mileage method will remain in effect
19for that motor vehicle for any period for which the Department
20may issue a notice of tax liability under this Act.
21    For purposes of determining qualifying trips or miles,
22motor vehicles that carry persons or property for hire, even
23just between points in Illinois, will be considered used for
24hire in interstate commerce if the motor vehicle transports
25persons whose journeys or property whose shipments originate or
26terminate outside Illinois. The exemption for motor vehicles

 

 

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1used as rolling stock moving in interstate commerce may be
2claimed only for the following vehicles: (i) motor vehicles
3whose gross vehicle weight rating exceeds 16,000 pounds; and
4(ii) limousines, as defined in Section 1-139.1 of the Illinois
5Vehicle Code. This definition applies to all property purchased
6for the purpose of being attached to those motor vehicles as a
7part thereof.
8    (d) Beginning July 1, 2004, "use as rolling stock moving in
9interstate commerce" in paragraphs (4) and (4a) of the
10definition of "sale of service" in Section 2 and subsection (b)
11of Section 3-45 occurs for trailers, as defined in Section
121-209 of the Illinois Vehicle Code, semitrailers as defined in
13Section 1-187 of the Illinois Vehicle Code, and pole trailers
14as defined in Section 1-161 of the Illinois Vehicle Code, when
15during a 12-month period the rolling stock has carried persons
16or property for hire in interstate commerce for greater than
1750% of its total trips for that period or for greater than 50%
18of its total miles for that period. The person claiming the
19exemption for a trailer or trailers that will not be dedicated
20to a motor vehicle or group of motor vehicles shall make an
21election at the time of purchase to use either the trips or
22mileage method. Persons who purchased trailers prior to July 1,
232004 that are not dedicated to a motor vehicle or group of
24motor vehicles shall make an election to use either the trips
25or mileage method and document that election in their books and
26records. If no election is made under this subsection to use

 

 

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1the trips or mileage method, the person shall be deemed to have
2chosen the mileage method. Any election to use either the trips
3or mileage method will remain in effect for that trailer for
4any period for which the Department may issue a notice of tax
5liability under this Act.
6    For purposes of determining qualifying trips or miles,
7trailers, semitrailers, or pole trailers that carry property
8for hire, even just between points in Illinois, will be
9considered used for hire in interstate commerce if the
10trailers, semitrailers, or pole trailers transport property
11whose shipments originate or terminate outside Illinois. This
12definition applies to all property purchased for the purpose of
13being attached to those trailers, semitrailers, or pole
14trailers as a part thereof. In lieu of a person providing
15documentation regarding the qualifying use of each individual
16trailer, semitrailer, or pole trailer, that person may document
17such qualifying use by providing documentation of the
18following:
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

 

 

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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, 2011, "use as rolling stock moving in
23interstate commerce" in paragraphs (4) and (4a) of the
24definition of "sale of service" in Section 2 and subsection (b)
25of Section 3-45 occurs for aircraft and watercraft when during
26a 12-month period the rolling stock has carried persons or

 

 

HB3447- 12 -LRB097 07758 HLH 47870 b

1property for hire in interstate commerce for greater than 50%
2of its total trips for that period or for greater than 50% of
3its 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. Persons who purchased
6aircraft or watercraft prior to July 1, 2011 shall make an
7election to use either the trips or mileage method and document
8that election in their books and records. If no election is
9made under this subsection to use the trips or mileage method,
10the person shall be deemed to have chosen the mileage method.
11    (f) Any election to use either the trips or mileage method
12made under the provisions of subsections (c), (d), or (e) of
13this 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
16changing Section 2d as follows:
 
17    (35 ILCS 115/2d)
18    Sec. 2d. Motor vehicles; trailers; use as rolling stock
19definition.
20    (a) Through June 30, 2003, "use as rolling stock moving in
21interstate commerce" in subsections (d) and (d-1) of the
22definition of "sale of service" in Section 2 means for motor
23vehicles, as defined in Section 1-146 of the Illinois Vehicle
24Code, and trailers, as defined in Section 1-209 of the Illinois

 

 

HB3447- 13 -LRB097 07758 HLH 47870 b

1Vehicle Code, when on 15 or more occasions in a 12-month period
2the motor vehicle and trailer has carried persons or property
3for hire in interstate commerce, even just between points in
4Illinois, if the motor vehicle and trailer transports persons
5whose journeys or property whose shipments originate or
6terminate outside Illinois. This definition applies to all
7property purchased for the purpose of being attached to those
8motor 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
11paragraphs (d) and (d-1) of the definition of "sale of service"
12in Section 2 occurs for motor vehicles, as defined in Section
131-146 of the Illinois Vehicle Code, when during a 12-month
14period the rolling stock has carried persons or property for
15hire in interstate commerce for 51% of its total trips and
16transports persons whose journeys or property whose shipments
17originate or terminate outside Illinois. Trips that are only
18between points in Illinois will not be counted as interstate
19trips when calculating whether the tangible personal property
20qualifies for the exemption but such trips will be included in
21total trips taken.
22    (c) Beginning July 1, 2004, "use as rolling stock moving in
23interstate commerce" in paragraphs (d) and (d-1) of the
24definition of "sale of service" in Section 2 occurs for motor
25vehicles, as defined in Section 1-146 of the Illinois Vehicle
26Code, when during a 12-month period the rolling stock has

 

 

HB3447- 14 -LRB097 07758 HLH 47870 b

1carried persons or property for hire in interstate commerce for
2greater than 50% of its total trips for that period or for
3greater than 50% of its total miles for that period. The person
4claiming the exemption shall make an election at the time of
5purchase to use either the trips or mileage method. Persons who
6purchased motor vehicles prior to July 1, 2004 shall make an
7election to use either the trips or mileage method and document
8that election in their books and records. If no election is
9made under this subsection to use the trips or mileage method,
10the person shall be deemed to have chosen the mileage method.
11Any election to use either the trips or mileage method will
12remain in effect for that motor vehicle for any period for
13which the Department may issue a notice of tax liability under
14this Act.
15    For purposes of determining qualifying trips or miles,
16motor vehicles that carry persons or property for hire, even
17just between points in Illinois, will be considered used for
18hire in interstate commerce if the motor vehicle transports
19persons whose journeys or property whose shipments originate or
20terminate outside Illinois. The exemption for motor vehicles
21used as rolling stock moving in interstate commerce may be
22claimed only for the following vehicles: (i) motor vehicles
23whose gross vehicle weight rating exceeds 16,000 pounds; and
24(ii) limousines, as defined in Section 1-139.1 of the Illinois
25Vehicle Code. This definition applies to all property purchased
26for the purpose of being attached to those motor vehicles as a

 

 

HB3447- 15 -LRB097 07758 HLH 47870 b

1part thereof.
2    (d) Beginning July 1, 2004, "use as rolling stock moving in
3interstate commerce" in paragraphs (d) and (d-1) of the
4definition of "sale of service" in Section 2 occurs for
5trailers, as defined in Section 1-209 of the Illinois Vehicle
6Code, semitrailers as defined in Section 1-187 of the Illinois
7Vehicle Code, and pole trailers as defined in Section 1-161 of
8the Illinois Vehicle Code, when during a 12-month period the
9rolling stock has carried persons or property for hire in
10interstate commerce for greater than 50% of its total trips for
11that period or for greater than 50% of its total miles for that
12period. The person claiming the exemption for a trailer or
13trailers that will not be dedicated to a motor vehicle or group
14of motor vehicles shall make an election at the time of
15purchase to use either the trips or mileage method. Persons who
16purchased trailers prior to July 1, 2004 that are not dedicated
17to a motor vehicle or group of motor vehicles shall make an
18election to use either the trips or mileage method and document
19that election in their books and records. If no election is
20made under this subsection to use the trips or mileage method,
21the person shall be deemed to have chosen the mileage method.
22Any election to use either the trips or mileage method will
23remain in effect for that trailer for any period for which the
24Department may issue a notice of tax liability under this Act.
25    For purposes of determining qualifying trips or miles,
26trailers, semitrailers, or pole trailers that carry property

 

 

HB3447- 16 -LRB097 07758 HLH 47870 b

1for hire, even just between points in Illinois, will be
2considered used for hire in interstate commerce if the
3trailers, semitrailers, or pole trailers transport property
4whose shipments originate or terminate outside Illinois. This
5definition applies to all property purchased for the purpose of
6being attached to those trailers, semitrailers, or pole
7trailers as a part thereof. In lieu of a person providing
8documentation regarding the qualifying use of each individual
9trailer, semitrailer, or pole trailer, that person may document
10such qualifying use by providing documentation of the
11following:
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

 

 

HB3447- 17 -LRB097 07758 HLH 47870 b

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, 2011, "use as rolling stock moving in
16interstate commerce" in paragraphs (d) and (d-1) of the
17definition of "sale of service" in Section 2 occurs for
18aircraft and watercraft when during a 12-month period the
19rolling stock has carried persons or property for hire in
20interstate commerce for greater than 50% of its total trips for
21that period or for greater than 50% of its total miles for that
22period. The person claiming the exemption shall make an
23election at the time of purchase to use either the trips or
24mileage method. Persons who purchased aircraft or watercraft
25prior to July 1, 2011 shall make an election to use either the
26trips or mileage method and document that election in their

 

 

HB3447- 18 -LRB097 07758 HLH 47870 b

1books and records. If no election is made under this subsection
2to use the trips or mileage method, the person shall be deemed
3to have chosen the mileage method.
4    (f) Any election to use either the trips or mileage method
5made under the provisions of subsections (c), (d), or (e) of
6this 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
9changing Section 2-51 as follows:
 
10    (35 ILCS 120/2-51)
11    Sec. 2-51. Motor vehicles; trailers; use as rolling stock
12definition.
13    (a) Through June 30, 2003, "use as rolling stock moving in
14interstate commerce" in paragraphs (12) and (13) of Section 2-5
15means for motor vehicles, as defined in Section 1-146 of the
16Illinois Vehicle Code, and trailers, as defined in Section
171-209 of the Illinois Vehicle Code, when on 15 or more
18occasions in a 12-month period the motor vehicle and trailer
19has carried persons or property for hire in interstate
20commerce, even just between points in Illinois, if the motor
21vehicle and trailer transports persons whose journeys or
22property whose shipments originate or terminate outside
23Illinois. This definition applies to all property purchased for
24the purpose of being attached to those motor vehicles or

 

 

HB3447- 19 -LRB097 07758 HLH 47870 b

1trailers 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
4paragraphs (12) and (13) of Section 2-5 occurs for motor
5vehicles, as defined in Section 1-146 of the Illinois Vehicle
6Code, when during a 12-month period the rolling stock has
7carried persons or property for hire in interstate commerce for
851% of its total trips and transports persons whose journeys or
9property whose shipments originate or terminate outside
10Illinois. Trips that are only between points in Illinois shall
11not be counted as interstate trips when calculating whether the
12tangible personal property qualifies for the exemption but such
13trips shall be included in total trips taken.
14    (c) Beginning July 1, 2004, "use as rolling stock moving in
15interstate commerce" in paragraphs (12) and (13) of Section 2-5
16occurs for motor vehicles, as defined in Section 1-146 of the
17Illinois Vehicle Code, when during a 12-month period the
18rolling stock has carried persons or property for hire in
19interstate commerce for greater than 50% of its total trips for
20that period or for greater than 50% of its total miles for that
21period. The person claiming the exemption shall make an
22election at the time of purchase to use either the trips or
23mileage method. Persons who purchased motor vehicles prior to
24July 1, 2004 shall make an election to use either the trips or
25mileage method and document that election in their books and
26records. If no election is made under this subsection to use

 

 

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1the trips or mileage method, the person shall be deemed to have
2chosen the mileage method. Any election to use either the trips
3or mileage method will remain in effect for that motor vehicle
4for any period for which the Department may issue a notice of
5tax liability under this Act.
6    For purposes of determining qualifying trips or miles,
7motor vehicles that carry persons or property for hire, even
8just between points in Illinois, will be considered used for
9hire in interstate commerce if the motor vehicle transports
10persons whose journeys or property whose shipments originate or
11terminate outside Illinois. The exemption for motor vehicles
12used as rolling stock moving in interstate commerce may be
13claimed only for the following vehicles: (i) motor vehicles
14whose gross vehicle weight rating exceeds 16,000 pounds; and
15(ii) limousines, as defined in Section 1-139.1 of the Illinois
16Vehicle Code. This definition applies to all property purchased
17for the purpose of being attached to those motor vehicles as a
18part thereof.
19    (d) Beginning July 1, 2004, "use as rolling stock moving in
20interstate commerce" in paragraphs (12) and (13) of Section 2-5
21occurs for trailers, as defined in Section 1-209 of the
22Illinois Vehicle Code, semitrailers as defined in Section 1-187
23of the Illinois Vehicle Code, and pole trailers as defined in
24Section 1-161 of the Illinois Vehicle Code, when during a
2512-month period the rolling stock has carried persons or
26property for hire in interstate commerce for greater than 50%

 

 

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1of its total trips for that period or for greater than 50% of
2its total miles for that period. The person claiming the
3exemption for a trailer or trailers that will not be dedicated
4to a motor vehicle or group of motor vehicles shall make an
5election at the time of purchase to use either the trips or
6mileage method. Persons who purchased trailers prior to July 1,
72004 that are not dedicated to a motor vehicle or group of
8motor vehicles shall make an election to use either the trips
9or mileage method and document that election in their books and
10records. If no election is made under this subsection to use
11the trips or mileage method, the person shall be deemed to have
12chosen the mileage method. Any election to use either the trips
13or mileage method will remain in effect for that trailer for
14any period for which the Department may issue a notice of tax
15liability under this Act.
16    For purposes of determining qualifying trips or miles,
17trailers, semitrailers, or pole trailers that carry property
18for hire, even just between points in Illinois, will be
19considered used for hire in interstate commerce if the
20trailers, semitrailers, or pole trailers transport property
21whose shipments originate or terminate outside Illinois. This
22definition applies to all property purchased for the purpose of
23being attached to those trailers, semitrailers, or pole
24trailers as a part thereof. In lieu of a person providing
25documentation regarding the qualifying use of each individual
26trailer, semitrailer, or pole trailer, that person may document

 

 

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1such qualifying use by providing documentation of the
2following:
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

 

 

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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, 2011, "use as rolling stock moving in
7interstate commerce" in paragraphs (12) and (13) of Section 2-5
8occurs for aircraft and watercraft when during a 12-month
9period the rolling stock has carried persons or property for
10hire in interstate commerce for greater than 50% of its total
11trips for that period or for greater than 50% of its total
12miles for that period. The person claiming the exemption shall
13make an election at the time of purchase to use either the
14trips or mileage method. Persons who purchased aircraft or
15watercraft prior to July 1, 2011 shall make an election to use
16either the trips or mileage method and document that election
17in their books and records. If no election is made under this
18subsection to use the trips or mileage method, the person shall
19be deemed to have chosen the mileage method.
20    (f) Any election to use either the trips or mileage method
21made under the provisions of subsections (c), (d), or (e) of
22this 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
25becoming law.