Full Text of HB5942 99th General Assembly
HB5942 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB5942 Introduced , by Rep. Michael Unes SYNOPSIS AS INTRODUCED: |
| |
Amends the Service Use Tax Act. Makes a
technical change in a Section concerning rolling stock.
|
| |
| | A BILL FOR |
|
| | | HB5942 | | LRB099 18681 HLH 43064 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 Service Use Tax Act is amended by changing | 5 | | Section 3-51 as follows:
| 6 | | (35 ILCS 110/3-51)
| 7 | | Sec. 3-51. 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 subsection (b) of Section 3-45 means | 11 | | for motor
vehicles, as defined in Section 1-46 of the Illinois | 12 | | Vehicle Code, and
trailers, as defined in Section 1-209 of the | 13 | | Illinois Vehicle Code, when on 15
or more
occasions in a | 14 | | 12-month period the motor vehicle and trailer has carried
| 15 | | persons
or property
for hire in interstate commerce, even just | 16 | | between points in Illinois, if the
motor vehicle and trailer | 17 | | transports persons whose journeys or property
whose shipments | 18 | | originate or terminate outside Illinois. This definition
| 19 | | applies to all property purchased for the purpose of being | 20 | | attached to those
motor
vehicles or trailers as a part thereof.
| 21 | | (b) On and after July 1, 2003 and through June 30, 2004, | 22 | | "use as rolling stock moving in interstate
commerce" in
| 23 | | paragraphs (4) and (4a) of the definition of "sale of service" |
| | | HB5942 | - 2 - | LRB099 18681 HLH 43064 b |
|
| 1 | | in Section 2
and subsection (b) of Section 3-45 occurs for | 2 | | motor vehicles, as defined in
Section 1-146 of the Illinois | 3 | | Vehicle Code, when
during a 12-month period the rolling stock | 4 | | has carried persons or property for
hire in
interstate commerce | 5 | | for 51% of its total trips and transports persons whose
| 6 | | journeys or
property whose shipments originate or terminate | 7 | | outside Illinois. Trips that
are only
between points in | 8 | | Illinois shall not be counted as interstate trips when
| 9 | | calculating whether
the tangible personal property qualifies | 10 | | for the exemption but such trips shall
be included
in total | 11 | | trips taken.
| 12 | | (c) Beginning July 1, 2004, "use as rolling stock moving in | 13 | | interstate commerce" in paragraphs (4) and (4a) of the | 14 | | definition of "sale of service" in Section 2 and subsection (b) | 15 | | of Section 3-45 occurs for motor vehicles, as defined in | 16 | | Section 1-146 of the Illinois Vehicle Code, when during a | 17 | | 12-month period the rolling stock has carried persons or | 18 | | property for hire in interstate commerce for greater than 50% | 19 | | of its total trips for that period or for greater than 50% of | 20 | | its total miles for that period. The person claiming the | 21 | | exemption shall make an election at the time of purchase to use | 22 | | either the trips or mileage method. Persons who purchased motor | 23 | | vehicles prior to July 1, 2004 shall make an election to use | 24 | | either the trips or mileage method and document that election | 25 | | in their books and records. If no election is made under this | 26 | | subsection to use the trips or mileage method, the person shall |
| | | HB5942 | - 3 - | LRB099 18681 HLH 43064 b |
|
| 1 | | be deemed to have chosen the mileage method. | 2 | | For purposes of determining qualifying trips or miles, | 3 | | motor vehicles that carry persons or property for hire, even | 4 | | just between points in Illinois, will be considered used for | 5 | | hire in interstate commerce if the motor vehicle transports | 6 | | persons whose journeys or property whose shipments originate or | 7 | | terminate outside Illinois. The exemption for motor vehicles
| 8 | | used as rolling stock moving in interstate commerce may be
| 9 | | claimed only for the following vehicles: (i) motor vehicles | 10 | | whose gross vehicle weight
rating exceeds 16,000 pounds; and | 11 | | (ii) limousines, as defined in Section 1-139.1 of the Illinois | 12 | | Vehicle Code. This definition applies to all property purchased | 13 | | for the purpose of being attached to those motor vehicles as a | 14 | | part thereof. | 15 | | (d) Beginning July 1, 2004, "use as rolling stock moving in | 16 | | interstate commerce" in paragraphs (4) and (4a) of the | 17 | | definition of "sale of service" in Section 2 and subsection (b) | 18 | | of Section 3-45 occurs for trailers, as defined in Section | 19 | | 1-209 of the Illinois Vehicle Code, semitrailers as defined in | 20 | | Section 1-187 of the Illinois Vehicle Code, and pole trailers | 21 | | as defined in Section 1-161 of the Illinois Vehicle Code, when | 22 | | during a 12-month period the rolling stock has carried persons | 23 | | or property for hire in interstate commerce for greater than | 24 | | 50% of its total trips for that period or for greater than 50% | 25 | | of its total miles for that period. The person claiming the | 26 | | exemption for a trailer or trailers that will not be dedicated |
| | | HB5942 | - 4 - | LRB099 18681 HLH 43064 b |
|
| 1 | | to a motor vehicle or group of motor vehicles shall make an | 2 | | election at the time of purchase to use either the trips or | 3 | | mileage method. Persons who purchased trailers prior to July 1, | 4 | | 2004 that are not dedicated to a motor vehicle or group of | 5 | | motor vehicles shall make an election to use either the trips | 6 | | or mileage method and document that election in their books and | 7 | | records. If no election is made under this subsection to use | 8 | | the trips or mileage method, the person shall be deemed to have | 9 | | chosen the mileage method. | 10 | | For purposes of determining qualifying trips or miles, | 11 | | trailers, semitrailers, or pole trailers that carry property | 12 | | for hire, even just between points in Illinois, will be | 13 | | considered used for hire in interstate commerce if the | 14 | | trailers, semitrailers, or pole trailers transport property | 15 | | whose shipments originate or terminate outside Illinois. This | 16 | | definition applies to all property purchased for the purpose of | 17 | | being attached to those trailers, semitrailers, or pole | 18 | | trailers as a part thereof. In lieu of a person providing | 19 | | documentation regarding the qualifying use of each individual | 20 | | trailer, semitrailer, or pole trailer, that person may document | 21 | | such qualifying use by providing documentation of the | 22 | | following: | 23 | | (1) If a trailer, semitrailer, or pole trailer is | 24 | | dedicated to a motor vehicle that qualifies as rolling | 25 | | stock moving in interstate commerce under subsection (c) of | 26 | | this Section, then that trailer, semitrailer, or pole |
| | | HB5942 | - 5 - | LRB099 18681 HLH 43064 b |
|
| 1 | | trailer qualifies as rolling stock moving in interstate | 2 | | commerce under this subsection. | 3 | | (2) If a trailer, semitrailer, or pole trailer is | 4 | | dedicated to a group of motor vehicles that all qualify as | 5 | | rolling stock moving in interstate commerce under | 6 | | subsection (c) of this Section, then that trailer, | 7 | | semitrailer, or pole trailer qualifies as rolling stock | 8 | | moving in interstate commerce under this subsection. | 9 | | (3) If one or more trailers, semitrailers, or pole | 10 | | trailers are dedicated to a group of motor vehicles and not | 11 | | all of those motor vehicles in that group qualify as | 12 | | rolling stock moving in interstate commerce under | 13 | | subsection (c) of this Section, then the percentage of | 14 | | those trailers, semitrailers, or pole trailers that | 15 | | qualifies as rolling stock moving in interstate commerce | 16 | | under this subsection is equal to the percentage of those | 17 | | motor vehicles in that group that qualify as rolling stock | 18 | | moving in interstate commerce under subsection (c) of this | 19 | | Section to which those trailers, semitrailers, or pole | 20 | | trailers are dedicated. However, to determine the | 21 | | qualification for the exemption provided under this item | 22 | | (3), the mathematical application of the qualifying | 23 | | percentage to one or more trailers, semitrailers, or pole | 24 | | trailers under this subpart shall not be allowed as to any | 25 | | fraction of a trailer, semitrailer, or pole trailer.
| 26 | | (e) For aircraft and watercraft purchased on or after |
| | | HB5942 | - 6 - | LRB099 18681 HLH 43064 b |
|
| 1 | | January 1, 2014, "use as rolling stock moving in interstate | 2 | | commerce" in (i) paragraphs (4) and (4a) of the definition of | 3 | | "sale of service" in Section 2 and (ii) subsection (b) of | 4 | | Section 3-45 occurs when, during a 12-month period, the rolling | 5 | | stock has carried persons or property for hire in interstate | 6 | | commerce for greater than 50% of its total trips for that | 7 | | period or for greater than 50% of its total miles for that | 8 | | period. The person claiming the exemption shall make an | 9 | | election at the time of purchase to use either the trips or | 10 | | mileage method and document that election in their books and | 11 | | records. If no election is made under this subsection to use | 12 | | the trips or mileage method, the person shall be deemed to have | 13 | | chosen the mileage method. For aircraft, flight hours may be | 14 | | used in lieu of recording miles in determining whether the | 15 | | aircraft meets the mileage test in this subsection. For | 16 | | watercraft, nautical miles or trip hours may be used in lieu of | 17 | | recording miles in determining whether the watercraft meets the | 18 | | mileage test in this subsection. | 19 | | Notwithstanding any other provision of law to the contrary, | 20 | | property purchased on or after January 1, 2014 for the purpose | 21 | | of being attached to aircraft or watercraft as a part thereof | 22 | | qualifies as rolling stock moving in interstate commerce only | 23 | | if the aircraft or watercraft to which it will be attached | 24 | | qualifies as rolling stock moving in interstate commerce under | 25 | | the test set forth in this subsection (e), regardless of when | 26 | | the aircraft or watercraft was purchased. Persons who purchased |
| | | HB5942 | - 7 - | LRB099 18681 HLH 43064 b |
|
| 1 | | aircraft or watercraft prior to January 1, 2014 shall make an | 2 | | election to use either the trips or mileage method and document | 3 | | that election in their books and records for the purpose of | 4 | | determining whether property purchased on or after January 1, | 5 | | 2014 for the purpose of being attached to aircraft or | 6 | | watercraft as a part thereof qualifies as rolling stock moving | 7 | | in interstate commerce under this subsection (e). | 8 | | (f) The election to use either the trips or mileage method | 9 | | made under the provisions of subsections (c), (d), or (e) of | 10 | | this Section will remain in effect for the duration of the | 11 | | purchaser's ownership of that item. | 12 | | (Source: P.A. 98-584, eff. 8-27-13.)
|
|