Full Text of SB2422 99th General Assembly
SB2422 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB2422 Introduced 2/9/2016, by Sen. Sue Rezin SYNOPSIS AS INTRODUCED: |
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Amends the Service Occupation 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 Service Occupation Tax Act is amended by | 5 | | changing Section 2d as follows:
| 6 | | (35 ILCS 115/2d)
| 7 | | Sec. 2d. Motor vehicles; trailers; use as rolling stock | 8 | | definition. | 9 | | (a) Through June
30, 2003, "use as as
rolling stock moving | 10 | | in
interstate commerce" in subsections (d) and (d-1) of the | 11 | | definition of "sale of
service" in Section 2 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
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| 1 | | paragraphs (d) and (d-1) of the definition of "sale of service" | 2 | | in
Section 2 occurs for motor vehicles, as defined in Section | 3 | | 1-146 of the
Illinois Vehicle Code,
when during a 12-month | 4 | | period the rolling stock has carried persons or property
for | 5 | | hire
in interstate commerce for 51% of its total trips and | 6 | | transports persons whose
journeys or
property whose shipments | 7 | | originate or terminate outside Illinois. Trips that
are only
| 8 | | between points in Illinois will not be counted as interstate | 9 | | trips when
calculating whether
the tangible personal property | 10 | | qualifies for the exemption but such trips will
be included
in | 11 | | total trips taken.
| 12 | | (c) Beginning July 1, 2004, "use as rolling stock moving in | 13 | | interstate commerce" in paragraphs (d) and (d-1) of the | 14 | | definition of "sale of service" in Section 2 occurs for motor | 15 | | vehicles, as defined in Section 1-146 of the Illinois Vehicle | 16 | | Code, when during a 12-month period the rolling stock has | 17 | | carried persons or property for hire in interstate commerce for | 18 | | greater than 50% of its total trips for that period or for | 19 | | greater than 50% of its total miles for that period. The person | 20 | | claiming the exemption shall make an election at the time of | 21 | | purchase to use either the trips or mileage method. Persons who | 22 | | purchased motor vehicles prior to July 1, 2004 shall make an | 23 | | election to use either the trips or mileage method and document | 24 | | that election in their books and records. If no election is | 25 | | made under this subsection to use the trips or mileage method, | 26 | | the person shall be deemed to have chosen the mileage method. |
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| 1 | | For purposes of determining qualifying trips or miles, | 2 | | motor vehicles that carry persons or property for hire, even | 3 | | just between points in Illinois, will be considered used for | 4 | | hire in interstate commerce if the motor vehicle transports | 5 | | persons whose journeys or property whose shipments originate or | 6 | | terminate outside Illinois. The exemption for motor vehicles
| 7 | | used as rolling stock moving in interstate commerce may be
| 8 | | claimed only for the following vehicles: (i) motor vehicles | 9 | | whose gross vehicle weight
rating exceeds 16,000 pounds; and | 10 | | (ii) limousines, as defined in Section 1-139.1 of the Illinois | 11 | | Vehicle Code. This definition applies to all property purchased | 12 | | for the purpose of being attached to those motor vehicles as a | 13 | | part thereof. | 14 | | (d) Beginning July 1, 2004, "use as rolling stock moving in | 15 | | interstate commerce" in paragraphs (d) and (d-1) of the | 16 | | definition of "sale of service" in Section 2 occurs for | 17 | | trailers, as defined in Section 1-209 of the Illinois Vehicle | 18 | | Code, semitrailers as defined in Section 1-187 of the Illinois | 19 | | Vehicle Code, and pole trailers as defined in Section 1-161 of | 20 | | the Illinois Vehicle Code, when during a 12-month period the | 21 | | rolling stock has carried persons or property for hire in | 22 | | interstate commerce for greater than 50% of its total trips for | 23 | | that period or for greater than 50% of its total miles for that | 24 | | period. The person claiming the exemption for a trailer or | 25 | | trailers that will not be dedicated to a motor vehicle or group | 26 | | of motor vehicles shall make an election at the time of |
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| 1 | | purchase to use either the trips or mileage method. Persons who | 2 | | purchased trailers prior to July 1, 2004 that are not dedicated | 3 | | to a motor vehicle or group of motor vehicles shall make an | 4 | | election to use either the trips or mileage method and document | 5 | | that election in their books and records. If no election is | 6 | | made under this subsection to use the trips or mileage method, | 7 | | the person shall be deemed to have chosen the mileage method. | 8 | | For purposes of determining qualifying trips or miles, | 9 | | trailers, semitrailers, or pole trailers that carry property | 10 | | for hire, even just between points in Illinois, will be | 11 | | considered used for hire in interstate commerce if the | 12 | | trailers, semitrailers, or pole trailers transport property | 13 | | whose shipments originate or terminate outside Illinois. This | 14 | | definition applies to all property purchased for the purpose of | 15 | | being attached to those trailers, semitrailers, or pole | 16 | | trailers as a part thereof. In lieu of a person providing | 17 | | documentation regarding the qualifying use of each individual | 18 | | trailer, semitrailer, or pole trailer, that person may document | 19 | | such qualifying use by providing documentation of the | 20 | | following: | 21 | | (1) If a trailer, semitrailer, or pole trailer is | 22 | | dedicated to a motor vehicle that qualifies as rolling | 23 | | stock moving in interstate commerce under subsection (c) of | 24 | | this Section, then that trailer, semitrailer, or pole | 25 | | trailer qualifies as rolling stock moving in interstate | 26 | | commerce under this subsection. |
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| 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 | | (e) For aircraft and watercraft purchased on or after | 25 | | January 1 2014, "use as rolling stock moving in interstate | 26 | | commerce" in paragraphs (d) and (d-1) of the definition of |
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| 1 | | "sale of service" in Section 2 occurs when, during a 12-month | 2 | | period, the rolling stock has carried persons or property for | 3 | | hire in interstate commerce for greater than 50% of its total | 4 | | trips for that period or for greater than 50% of its total | 5 | | miles for that period. The person claiming the exemption shall | 6 | | make an election at the time of purchase to use either the | 7 | | trips or mileage method and document that election in their | 8 | | books and records. If no election is made under this subsection | 9 | | to use the trips or mileage method, the person shall be deemed | 10 | | to have chosen the mileage method. For aircraft, flight hours | 11 | | may be used in lieu of recording miles in determining whether | 12 | | the aircraft meets the mileage test in this subsection. For | 13 | | watercraft, nautical miles or trip hours may be used in lieu of | 14 | | recording miles in determining whether the watercraft meets the | 15 | | mileage test in this subsection. | 16 | | Notwithstanding any other provision of law to the contrary, | 17 | | property purchased on or after January 1, 2014 for the purpose | 18 | | of being attached to aircraft or watercraft as a part thereof | 19 | | qualifies as rolling stock moving in interstate commerce only | 20 | | if the aircraft or watercraft to which it will be attached | 21 | | qualifies as rolling stock moving in interstate commerce under | 22 | | the test set forth in this subsection (e), regardless of when | 23 | | the aircraft or watercraft was purchased. Persons who purchased | 24 | | aircraft or watercraft prior to January 1, 2014 shall make an | 25 | | election to use either the trips or mileage method and document | 26 | | that election in their books and records for the purpose of |
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| 1 | | determining whether property purchased on or after January 1, | 2 | | 2014 for the purpose of being attached to aircraft or | 3 | | watercraft as a part thereof qualifies as rolling stock moving | 4 | | in interstate commerce under this subsection (e). | 5 | | (f) The election to use either the trips or mileage method | 6 | | made under the provisions of subsections (c), (d), or (e) of | 7 | | this Section will remain in effect for the duration of the | 8 | | purchaser's ownership of that item. | 9 | | (Source: P.A. 98-584, eff. 8-27-13.)
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