Full Text of SB2424 99th General Assembly
SB2424 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB2424 Introduced 2/9/2016, by Sen. Sue Rezin SYNOPSIS AS INTRODUCED: |
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Amends the Use Tax Act. Makes a technical change in a Section concerning rolling stock.
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| | A BILL FOR |
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| 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 | | the 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
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| 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. | 26 | | For purposes of determining qualifying trips or miles, |
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| 1 | | motor vehicles that carry persons or property for hire, even | 2 | | just between points in Illinois, will be considered used for | 3 | | hire in interstate commerce if the motor vehicle transports | 4 | | persons whose journeys or property whose shipments originate or | 5 | | terminate outside Illinois. The exemption for motor vehicles
| 6 | | used as rolling stock moving in interstate commerce may be
| 7 | | claimed only for the following vehicles: (i) motor vehicles | 8 | | whose gross vehicle weight
rating exceeds 16,000 pounds; and | 9 | | (ii) limousines, as defined in Section 1-139.1 of the Illinois | 10 | | Vehicle Code. This definition applies to all property purchased | 11 | | for the purpose of being attached to those motor vehicles as a | 12 | | part thereof. | 13 | | (d) Beginning July 1, 2004, "use as rolling stock moving in | 14 | | interstate commerce" in paragraphs (b) and (c) of Section 3-55 | 15 | | occurs for trailers, as defined in Section 1-209 of the | 16 | | Illinois Vehicle Code, semitrailers as defined in Section 1-187 | 17 | | of the Illinois Vehicle Code, and pole trailers as defined in | 18 | | Section 1-161 of the Illinois Vehicle Code, when during a | 19 | | 12-month period the rolling stock has carried persons or | 20 | | property for hire in interstate commerce for greater than 50% | 21 | | of its total trips for that period or for greater than 50% of | 22 | | its total miles for that period. The person claiming the | 23 | | exemption for a trailer or trailers that will not be dedicated | 24 | | to a motor vehicle or group of motor vehicles shall make an | 25 | | election at the time of purchase to use either the trips or | 26 | | mileage method. Persons who purchased trailers prior to July 1, |
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| 1 | | 2004 that are not dedicated to a motor vehicle or group of | 2 | | motor vehicles shall make an election to use either the trips | 3 | | or mileage method and document that election in their books and | 4 | | records. If no election is made under this subsection to use | 5 | | the trips or mileage method, the person shall be deemed to have | 6 | | chosen the mileage method. | 7 | | For purposes of determining qualifying trips or miles, | 8 | | trailers, semitrailers, or pole trailers that carry property | 9 | | for hire, even just between points in Illinois, will be | 10 | | considered used for hire in interstate commerce if the | 11 | | trailers, semitrailers, or pole trailers transport property | 12 | | whose shipments originate or terminate outside Illinois. This | 13 | | definition applies to all property purchased for the purpose of | 14 | | being attached to those trailers, semitrailers, or pole | 15 | | trailers as a part thereof. In lieu of a person providing | 16 | | documentation regarding the qualifying use of each individual | 17 | | trailer, semitrailer, or pole trailer, that person may document | 18 | | such qualifying use by providing documentation of the | 19 | | following: | 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 | 24 | | January 1, 2014, "use as rolling stock moving in interstate | 25 | | commerce" in paragraphs (b) and (c) of Section 3-55 occurs | 26 | | when, during a 12-month period, the rolling stock has carried |
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| 1 | | persons or property for hire in interstate commerce for greater | 2 | | than 50% of its total trips for that period or for greater than | 3 | | 50% of 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 and document that election | 6 | | in their books and records. If no election is made under this | 7 | | subsection to use the trips or mileage method, the person shall | 8 | | be deemed to have chosen the mileage method. For aircraft, | 9 | | flight hours may be used in lieu of recording miles in | 10 | | determining whether the aircraft meets the mileage test in this | 11 | | subsection. For watercraft, nautical miles or trip hours may be | 12 | | used in lieu of recording miles in determining whether the | 13 | | watercraft meets the mileage test in this subsection. | 14 | | Notwithstanding any other provision of law to the contrary, | 15 | | property purchased on or after January 1, 2014 for the purpose | 16 | | of being attached to aircraft or watercraft as a part thereof | 17 | | qualifies as rolling stock moving in interstate commerce only | 18 | | if the aircraft or watercraft to which it will be attached | 19 | | qualifies as rolling stock moving in interstate commerce under | 20 | | the test set forth in this subsection (e), regardless of when | 21 | | the aircraft or watercraft was purchased. Persons who purchased | 22 | | aircraft or watercraft prior to January 1, 2014 shall make an | 23 | | election to use either the trips or mileage method and document | 24 | | that election in their books and records for the purpose of | 25 | | determining whether property purchased on or after January 1, | 26 | | 2014 for the purpose of being attached to aircraft or |
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| 1 | | watercraft as a part thereof qualifies as rolling stock moving | 2 | | in interstate commerce under this subsection (e). | 3 | | (f) The election to use either the trips or mileage method | 4 | | made under the provisions of subsections (c), (d), or (e) of | 5 | | this Section will remain in effect for the duration of the | 6 | | purchaser's ownership of that item. | 7 | | (Source: P.A. 98-584, eff. 8-27-13.)
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